Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration 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
1 Comment Play CEO Tapes: Buxton to Gilbert - ‘my Glencore quandary’

CEO Tapes: Buxton to Gilbert - ‘my Glencore quandary’

Do not miss the first two minutes of this film as Richard Buxton shares how he has been challenged by a client for owning shares in a certain company.

Play CEO Tapes: the huge opportunities for asset managers

CEO Tapes: the huge opportunities for asset managers

From tech disruption, retirement and poaching, the CEO discuss the opportunities for their businesses in this episode.

Play CEO Tapes: 'we're just a bunch of white dudes sitting here'

CEO Tapes: 'we're just a bunch of white dudes sitting here'

In our brand new series, eight CEOs discuss how the industry could do a better job for female fund managers.

Read More
Wealth Manager on Twitter