Octopus Capital Welcomes the Henry Smith Foundation into Affordable Housing Fund

Octopus Capital, an asset manager investing in the people, ideas, and industries that will change the world, has raised an additional £10m for its Affordable Housing Fund (“the Fund”) from the Henry Smith Foundation. This brings the total the fund has raised to £500m.

The Fund is focused on delivering high-quality, energy-efficient affordable homes across the UK. The fund invests in new-build developments, with a strong emphasis on social impact, community benefit, and sustainability.

The Henry Smith Foundation backs organisations working at critical points in people’s lives, where the right support can prevent harm and open up options. It does not deliver housing directly but invests in the organisations and systems that make stable housing possible.

Access to genuinely affordable housing remains a pressing challenge across the UK. This investment reflects the Foundation’s decision to direct part of its endowment towards increasing supply while generating sustainable returns.

This is the first time an investor from the UK Endowment & Foundation sector has invested into the Octopus’ Affordable Housing Fund, demonstrating its continued appeal to mission-aligned institutions across different sectors and regions.

This comes after the announcement last week that the Fund has made the shortlist for the Endowments Investing Challenge run by Friends Provident. The competitive process received a total of 60 applications from investment service providers in seven different countries and Octopus Capital has made the top five.

Jack Burnham, Head of Affordable Housing, Octopus Capital, said:

“We’re delighted to have received further support from the Endowment and Foundation sector, where we feel our Fund is uniquely placed in providing mission aligned investment by developing high quality and environmentally sustainable affordable homes. The story of the Henry Smith Foundation is a perfect fit for what the Fund is trying to achieve.”

William Sieghart, Chairman, Henry Smith Foundation, said: “Housing shapes whether other forms of support can succeed. When people do not have stable, affordable homes, progress elsewhere rarely lasts. For us, social housing is not only a social priority. It is also an investment opportunity, one that allows the endowment to grow while contributing to solutions rather than adding pressure to the housing market. We are increasingly aware that how we invest matters as much as what we fund. Our aim is for the endowment to generate sustainable returns in ways that align with our purpose and strengthen the systems our partners work within.”