The privatisation of children’s services is gathering pace, and it is attracting the worst kind of investor (thread) 1/
Here’s an invitation to invest in a new company called Dimensions Care EIS wealthclub.co.uk/eis-investment… Offered by an entity called WealthClub 2/
Dimensions Care wants to raise £3.3 million to open 18 children’s homes in the Midlands, including unregulated accommodation, and a foster care agency. 3/ 
Dimensions Care forecasts turnover of £9.4 million by year five, essentially fees paid by local authorities, and profits of just under £2 million. 4/
They describe this as ‘a high-risk investment’ (hence the carrot of high returns) 5/
They hope to clear off after five years at a huge profit, with a sale to private equity 6/
The money is being raised via an Enterprise Investment Scheme, which they also describe as ‘high-risk’. Such schemes are all about paying less tax 7/
There’s not much in the prospectus about actual children or young people. Why would there be? ‘Social care is a sector known for its resilience in downturns, making it attractive to private equity firms.’ 8/
It is not mentioned in the prospectus, but the directors of Dimensions Care are also directors of Tristone Capital, a ‘buy and build investment company’ in Manchester. tristone.capital/about/ 9/
The main man is Yannis Loucopoulos. I found his presentation online. This is what he looks for in investments, including “a clear opportunity to double earnings in five years.” 10/
These guys also expected to get rich. Instead, children in their care were thrown from their homes at the end of January
Privatisation is bad for children in care and bad for taxpayers.
It doesn’t have to be this way. 13/
(with apologies for the extra long thread)
It doesn’t have to be this way. 13/
(with apologies for the extra long thread)
