Private equity group Bridgepoint is seeking to sell care home operator Care UK, according to Reuters.
The news service said the buyout firm had asked Rothschild to put the care provider up for sale.
A source said: “Care UK has a very good portfolio of assets and its new care homes are pretty good.”
Sources added that private equity and infrastructure funds had shown interest in the provider.
Care UK was acquired by Bridgepoint in a £420m deal in 2010.
Three of the UK’s largest care providers – Four Seasons, HC-One and Care UK – are in the hands of private equity owners, which has prompted fears over the future financial stability of the sector.
Reuters has, meanwhile, reported that banks and direct lenders are competing to provide debt packages of around £250m to back the potential sale of Care UK.
Sources said the first round of bids were due on March 13.
A leveraged buyout structure is reported as being considered for the deal with infrastructure financing also said to be a possibility.
Bridgepoint, Rothschild and Care UK have decline to comment on the reports.