Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Octopus wraps tentacles around MedicX in £1bn deal

Octopus wraps tentacles around MedicX in £1bn deal

The MedicX Group, which runs the popular MedicX fund, is to be acquired by Octopus in a transaction that will boost the boutique’s assets by around £1 billion.

The closed-ended MedicX fund is a specialist investor in primary healthcare properties, with total assets of £489 million, that has long been an income pick among wealth managers including Investec, Rathbones and Brewin Dolphin thanks to its 6.9% yield.

Over the past three years the MedicX fund, which trades on a 34% premium to its net asset value, has returned 33.5% compared with 28.4% from the MSCI World Real Estate index.

Octopus has now agreed to buy the fund’s parent group, including the management team, which the firm stated would take assets under management at Octopus from £3.5 billion at present to approximately £4.5 billion.

MedicX is being sold by several other investors, Cabot Square Capital among them. The deal is subject to approval from the Financial Conduct Authority, but is expected to complete by the end of September 2014.

Mike Adams, chief executive of MedicX Group, will continue to work with his existing team in the same role on the MedicX fund.

David Staples, chairman of the MedicX fund, confirmed that there would be ‘no change in the strategy, nor the investment advisory agreement’.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Wealth Manager Retreat 2017: size isn't everything

Wealth Manager Retreat 2017: size isn't everything

We asked our delegates at the Wealth Manager Retreat what they think about the recent wave of consolidation in the industry.

1 Comment Play CIO Tapes - part 3: 'passive funds are anti-capitalist'

CIO Tapes - part 3: 'passive funds are anti-capitalist'

Citywire recently gathered three of the UK's leading fund investment heads to discuss their hopes, fears and the issues that their jobs throw at them daily.

Play CIO Tapes: do investors have it as good as it gets?

CIO Tapes: do investors have it as good as it gets?

Citywire gathered three of the UK's leading fund investment heads to discuss what they fear and what makes them cheer about the year ahead

Read More
Your Business: Cover Star Club

Profile: Rathbone's Newcastle boss on the road to £1bn

Profile: Rathbone's Newcastle boss on the road to £1bn

Starting from zero assets on day one, Rathbone's Newcastle team now looks after just over £400 million in clients money

Wealth Manager on Twitter