Foreword
“This dossier of disgrace exposes the self- interest and lack of integrity at the heart
of our Government’s sinister health reforms. In 2012 71 Members of Parliament
with links to private healthcare interests, voted to sell-off our beloved NHS. They did
this with no mandate from the people and our Prime Minister was one of them. The
sheer scale of the conflict of interest is staggering. But it is the subsequent betrayal
and privatisation of our NHS, driven by the monstrous Health and Social Care Act
that has made this a genuine scandal for our democracy. The Government and
their cronies must be exposed before it is too late to save our NHS.”
Len McCluskey
General Secretary
Unite the Union
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Contents
Executive Summary ............................................................................................................................. 7
Conservative MPs (64) ................................................................................................................... 7
1. David Cameron ...................................................................................................................... 7
2. Andrew Lansley . .................................................................................................................... 7
3. Harriet Baldwin........................................................................................................................ 8
4. Gregory Barker ....................................................................................................................... 8
5. Henry Bellingham ................................................................................................................... 8
6. Jake Berry................................................................................................................................ 9
7. Graham Brady......................................................................................................................... 9
8. Simon Burns ............................................................................................................................ 9
9. Nick de Bois ............................................................................................................................ 9
10. Steve Brine ............................................................................................................................ 9
11. Aidan Burley .......................................................................................................................... 9
12. Damian Collins.................................................................................................................... 10
13. David Davis ......................................................................................................................... 10
14. Jonathan Djanogly ............................................................................................................. 10
15. Richard Drax ....................................................................................................................... 10
16. Iain Duncan-Smith.............................................................................................................. 10
17. Philip Dunne ........................................................................................................................ 11
18. Michael Fallon ..................................................................................................................... 11
19. Mark Field ............................................................................................................................ 11
20. Liam Fox .............................................................................................................................. 11
21. George Freeman ................................................................................................................ 11
22. Mike Freer ........................................................................................................................... 12
23. Richard Fuller...................................................................................................................... 12
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23. Richard Graham ................................................................................................................. 12
25. Philip Hammond ................................................................................................................. 12
26. Mark Harper ........................................................................................................................ 12
27. Nick Herbert ........................................................................................................................ 13
28. Jeremy Hunt ........................................................................................................................ 13
29. Margot James ..................................................................................................................... 13
30. Sajid Javid ........................................................................................................................... 13
31. Jo Johnson .......................................................................................................................... 13
32. Kwarsi Kwateng .................................................................................................................. 13
33. Mark Lancaster ................................................................................................................... 14
34. Dr Phillip Lee ....................................................................................................................... 14
35. Oliver Letwin ....................................................................................................................... 14
36. Peter Lilley ........................................................................................................................... 14
37. Tim Loughton ...................................................................................................................... 14
38. Mary Macleod ..................................................................................................................... 14
39. Francis Maude .................................................................................................................... 15
40. Maria Miller .......................................................................................................................... 15
41. Andrew Mitchell .................................................................................................................. 15
42. Penny Mordaunt ................................................................................................................. 15
43. Brooks Newmark ................................................................................................................ 16
44. Jesse Norman..................................................................................................................... 16
45. Stephen O’Brien ................................................................................................................. 16
46. George Osbourne .............................................................................................................. 16
47. Richard Ottaway ................................................................................................................. 17
48. Priti Patel ............................................................................................................................. 17
49. John Redwood .................................................................................................................... 17
50. Jacob Rees-Mogg .............................................................................................................. 18
51. Malcolm Rifkind .................................................................................................................. 18
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52. Amber Rudd ........................................................................................................................ 18
53. David Ruffley....................................................................................................................... 18
54. Mark Simmonds.................................................................................................................. 19
55. Chris Skidmore ................................................................................................................... 19
56. Julian Smith......................................................................................................................... 19
57. Nicholas Soames ............................................................................................................... 19
58. John Stanley ....................................................................................................................... 20
59. Andrew Tyrie ....................................................................................................................... 20
60. Robin Walker ...................................................................................................................... 20
61. David Willetts ...................................................................................................................... 20
62. Rob Wilson .......................................................................................................................... 21
63. Tim Yeo................................................................................................................................ 21
64. Nadhim Zahawi ................................................................................................................... 21
Liberal Democrat MPs (7) ............................................................................................................ 21
1. Menzies Campbell ................................................................................................................ 21
2. Vince Cable ........................................................................................................................... 21
3. Nick Clegg ............................................................................................................................. 22
4. Simon Hughes ...................................................................................................................... 22
5. Stephen Lloyd ....................................................................................................................... 22
6. Robert Smith ......................................................................................................................... 22
7. Jo Swinson ............................................................................................................................ 22
Appendix – Health Secretary Jeremy Hunt - donations ............................................................... 23
In a nutshell .................................................................................................................................... 23
Key points ....................................................................................................................................... 23
Jeremy Hunt and the hedge fund boss ................................................................................. 23
Social Finance Ltd. ................................................................................................................... 23
The first NHS ‘pay for success’ bond: paying for home deaths ......................................... 23
Mega profits ............................................................................................................................... 23
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Detail with references ................................................................................................................... 24
Andrew Law ............................................................................................................................... 24
Law and Jeremy Hunt .............................................................................................................. 24
Social Investment Bonds ......................................................................................................... 25
The first NHS Social Investment Bond .................................................................................. 25
SIBs mean big money .............................................................................................................. 26
Social Investment Bonds and Goldman Sachs .................................................................... 27
Social Finance Ltd and Goldman Sachs ............................................................................... 27
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Executive Summary
A Unite investigation has uncovered 64 Tory and 7 Liberal Democrat MPs who have recent
or current financial links to companies or individuals trying to profit from the sell-off of the
NHS. All of them voted for the Health and Social Care Act, which created a legal
mechanism to force commissioners to put NHS services up for sale.
The MPs identified have these interests in every stage of the healthcare value chain from
private equity firms that fund private healthcare companies, to shareholdings in those same
companies. They are Chairman, partners, advisors, and owners in areas that include
pharmaceuticals, care homes, private health insurance, as well as lobbying, media and
recruitment for the sector.
When the Health and Social Care Act was still being debated in parliament, Nadhim Zahawi
said it was a “brilliant piece of legislation”. It certainly helped some people. ‘SThree’, the
recruitment company where Mr Zahawi is a non-executive director has gained £2.6 million in
revenue by filling vacancies created by the Act.
Previous Unite research published in the Guardian, confirmed that over £1.5 billion of NHS
funding went to just 15 companies connected to 23 Tory MPs and Lords through a
combination of donations, shares, employment and ownership. 1 This report shows that that
was just the tip of the iceberg. Twelve of those are listed below.
Conservative MPs (64)
1. David Cameron – Prime Minister
Financial link: Nursing and care home tycoon Dolar Popat has given the Conservatives
£209,000. The Ugandan-born dad-of-three has amassed an estimated £42 million fortune as
founder and chief of TLC Group, which provides services for the elderly. Mr Cameron made
the businessman a peer shortly after entering No10 in May 2010, and Lord Popat’s
donations include a £25,000 gift registered a week after the Tories’ health reforms were
unveiled last July. Recent research by Unite has revealed the company now run by Lord
Popat’s wife has gained over £4 million for providing Care services since the Health and
Social Care Act came into being. 2
2. Andrew Lansley - former health secretary and current MP for South Cambridgeshire.
John Nash, the former chairman (until 2010) of Care UK, gave £21,000 to fund Andrew
Lansley’s personal office in November 2009 when he was shadow health secretary and
preparing the White paper that led to the health and Social care bill. The telegraph reported
that a senior director of Care UK confirmed that 96 per cent of Care UK’s business, which
amounted to more than £400 million last year, came from the NHS. - Hedge fund boss John
Nash is a regular Conservative donor with close ties to the healthcare industry. 3
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Recommendations by Bridgepoint for the acquisition of Care UK suggested John Nash
would realise £20.2 million cash proceeds from the sale.
John Nash and his wife Caroline gave £203,500 to the party over the past five years. John
Nash is also a founder of City firm Sovereign Capital, which runs a string of private
healthcare firms. Fellow founder Ryan Robson is another major Tory donor who has given
the party £252,429.45.4
His donations included £50,000 to be a member of the party’s “Leader’s Group”, a
secretive cash-for-access club. The would-be MP, who tried but failed to get selected as the
election candidate in Bracknell, is managing partner at Sovereign Capital. 5 6
In 2008 Andrew Lansley received a donation from Julian Schild used to support his office in
his capacity as Shadow secretary for health. Julian Schild’s family made £184 million in 2006
by selling hospital bed-makers Huntleigh Technology.
Andrew Lansley’s wife, Sally Low, is founder and managing director of Low Associates (“We
make the link between the public and private sectors”). A Daily Telegraph report in February
records that the Low Associates website lists pharmaceuticals companies SmithKline
Beecham, Unilever and P&G among its clients. It also records Ms Low’s assertion that the
company “does not work with any client who has interests in the health sector”. The website
currently contains no reference to the drug firms listed above. 7
Christina Lineen, a former Head of Communications at private health company Circle spent
two years working for Lansley, when a shadow health secretary.
Quote: "The NHS is not for sale, there will be no privatisation."
3. Harriet Baldwin
Conservative MP for West Worcestershire. Former managing director of JP Morgan Asset
Management. JP Morgan is a major player in healthcare. According to their website they
serve: 1,100 hospitals, 10 of the top 10 health insurers, thousands of physicians groups, top
five pharmacy benefit managers, six of the top eight pharmacy retailers. Ms Baldwin has
shares in JP Morgan Employee 98 Trust. 8 9
4. Gregory Barker
Conservative MP for Bexhill and Battle. In 2008 held shares in HR company Penna plc. In
February, HFMA and Penna plc partnered to deliver HR services to the NHS - Was an
operating advisor to Pegasus Capital Advisors, LP, and a private equity firm with health
companies in their portfolio. Had shares in Quester VCT 5 plc a venture Capital with multiple
investments in healthcare companies. 10
5. Henry Bellingham
Conservative MP for North-West Norfolk - Former director and has shares in Lansdowne
Advisory Ltd, who have shares in private healthcare company, Circle. 11
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6. Jake Berry
Has registered interests in Top legal 500 firm Squire Patton Boggs (UK) LLP, (formerly
Squire, Sanders & Dempsey (UK) LLP) as a consultant advising on client services, business
development and on other specific matters. They work with multiple NHS trusts and local
authorities regarding PFI and PPP programs. 12 13
7. Graham Brady
MP for Altrincham and Sale former advisor on marketing and business strategy to PA
Consulting, a management consultancy company. PA Consulting has worked with the new
Clinical Commissioning Groups. Other NHS involvement includes, training, helping
commissioners in North-East London, performance management. 14 15
8. Simon Burns
MP for Chelmsford and former MP - attended an oncology conference paid for by Aventis
Pharma - a five-day trip to the US funded by a leading drug firm. 16 17
9. Nick de Bois
MP for Enfield North – Until December 2011, De Bois was the majority shareholder in Rapier
Design Group, an events management company heavily involved with the private medical
and pharmaceutical industries, and whose clients include leading names such as
AstraZeneca. The company was established by the Tory MP in 1998. Last year it had a
turnover of £13m. Last April, Rapier Design purchased Hampton Medical Conferences to
“strengthen the company’s position in the medical sector”. It is involved in running
conferences and other events for private-sector clients, and for NHS hospitals. 18
10. Steve Brine
MP for Winchester – According to the electoral register, received £14,999 in three separate
payments £5,000 19/01/2011, £4,999 17/04/2012, £5,000 22/03/2013 from Mr James R
Lupton who was appointed Conservative party Co-Treasurer in February this year. Mr
Lupton has also given over a million pounds to Conservative central party in last three
years. He is Chairman of investment bankers, Greenhill Europe, who have considerable
transaction experience and a global network of corporate relationships in the Healthcare
sector. 19
11. Aidan Burley
MP for Cannock Chase: Received six bottles of wine from Hitachi consultants for a short
speech he gave to a group of consultants on 11th March 2011. Hitachi Consulting UK is a
leading government consulting company with an 18-year track record in the UK. They have
extensive knowledge of the public sector, and many of their consultants have experience in
the NHS. In 2010, they announced the completion of a delivery portal for Commissioning
support for London (CSL). The creation of the new secure online portal provides National
Health Service (NHS) commissioners with access to a set of tools to help them monitor how
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their providers are performing. This is another example of private company benefitting from
the privatisation reforms of the NHS. 20
12. Damian Collins
MP for Folkstone and Hythe – Between 1999 and 2008 Mr Collins worked for marketing
agency M&C Saatchi. M&C Saatchi clients include PPP healthcare, AXA insurance,
Astrazeneca, Pfizer and Merck. See Lord Saatchi section. In 2008 he joined Lexington
Communications as a senior Counsel before leaving to become a MP. Lexington
Communications have a healthcare section, which says ‘With the NHS never far from the
headlines, our dedicated team of healthcare communications consultants can advise you on
how to successfully interact with a diverse range of stakeholders - in Westminster, Whitehall,
the reformed NHS, across the patient group community and in the private sector – to help
achieve your goals… Help you build relationships with influencers at a national level.’ 21
They have multiple fee-paying public consultancy clients in healthcare. 22
13. David Davis
MP for Haltemprice and Howden: Received a payment of £4,250 for a 6hr speaking
engagement for private health insurance company Aviva. 23
14. Jonathan Djanogly
Conservative MP - Office received payment of £1,900 from Huntleigh Healthcare Ltd, 310312 Dallow Road, Luton. The company manufactures medical, orthopaedic equipment and
instruments for measuring and is part of Huntleigh International Holdings Limited of the
same address. They are a member of the Getinge Group, a Swedish based group of
companies who are split between Healthcare and Life sciences. The acquisition of Huntleigh
by Getinge took place in 2007. In 2008, he had shares in private healthcare company
Medicsight, and private health insurance Aviva PLC. In 2008 had shares in WPP Group, a
marketing giant in healthcare.
15. Richard Drax
MP for Dorset South was selected for the Dorset South office in 2006. In 2009, his Dorset
South office received £10,000 from ‘Derek E Luckhurst’, who is the CEO and owner of the
care home group Agincare based in Dorset. Richard Drax’s constituency office received
further donations from Richard E Luckhurst of £2,000 in March 2012 and £2,000 in March
2013. In November 2012, Richard Drax officially opened the Gainsborough Care Home run
by Agincare. 24 Donation source – electoral commission
16. Iain Duncan-Smith
MP for Chingford and Woodford Green. Has shares in hygiene technology company Byotrol
plc, though no dividend received, which sells products to the NHS. 25
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17. Philip Dunne
MP for Ludlow. In 2008 was a non-executive director for investment Baronsmead VCT 4 plc,
and has shareholdings in the company, which according to its second-half 2011 report, has
multiple investments in private healthcare companies including Vectura Group plc, Alere
Inc, who work with many PCTs including the 'healthcheck programme,' and Tristel plc, a
leading provider of infection control products into the NHS. Healthcare & Education make up
9% of investments. 26
18. Michael Fallon
Conservative MP for Sevenoaks – Former Director of Attendo AB - 2008 to 2013 - a
Swedish private health company offering care and social care. 27
19. Mark Field
MP for Cities of London and Westminster. Board Advisor to Ellwood and Atfield; a specialist
recruitment firm in the public affairs and communications sector. They recruit for NHS
positions as well as private healthcare. The MP’s role includes, amongst other things
includes; ‘introducing the company to opportunities.’ 28 29
The press release announcing Mark Field's appointment as advisor said: ‘His experience,
coupled with his political position, perfectly complements Ellwood & Atfield and reinforces
the company’s position as the leading recruitment firm within communications and public
affairs.’
20. Liam Fox
Conservative MP – became shadow health secretary in 1999 – employs Adam Werrity as a
paid intern in 2004 – by this time Adam Werrity becomes a director of health consultancy
firm ‘UK Health Ltd’ (now dissolved), while Liam Fox was shadow health secretary of which
he and Liam Fox were shareholders. Werrity owned 11.5% of UK Health Group and Fox
owned 2.3%. In 2005 a researcher based in Mr Fox’s office worked ‘exclusively’ for the now
closed Atlantic Bridge ‘charity’, which Liam Fox was the founding member; Mr Werrity
became director, and which had links to radical right-wing neocons in the U.S. The
researcher received funding from Pfizer Inc. 30 He claimed ‘she has no function in any health
role.’ 31The researcher was Gabby Bertin, who was until recently David Cameron's press
secretary. Mr Fox received £5,000 to run his private office in October 2012 from investment
company IPGL limited, who purchased healthcare pharma company Cyprotex.32
21. George Freeman
His own business (Recently dormant): Has shares in Hill House Assets Ltd – which was
http://www.4d-biomedical.com,33 a specialist adviser on Healthcare, markets, Technology
development, Business strategy & Venture financing, working with NHS trusts. Speaking in
Parliament on 11 November 2010 during the ‘Policy For Growth’ debate he said in regards to
the national health service. “I know from my own experience that we are sitting on billions of
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pounds-worth of patient data. Let us think about how we can unlock the value of those data
around the world." 34
22. Mike Freer
Finchley and Golders Green: Recently provided strategic marketing advice for Care Matters,
a financial planning company for care, which includes in care homes. 35 36
23. Richard Fuller
Bedford: Worked for L.E.K consulting from 1984 and intermittently until 2007.
L.E.K consultancy have ‘six partners in our wider European healthcare practice, who would
be able to provide commissioning support.’ 37
23. Richard Graham
Gloucester - His constituency office received £3,000 from Circle investor, Mr Robin Crispin
Odey on 03/12/2007. Richard Graham was elected MP for Gloucester at the last general
election and like Odey has previously worked for Barings bank, which went bust in 1995. In
total Odey has donated £222,000 to the Conservative party. 38
24. William Hague
In 2008, William Hague was a non-executive director of IT company AMT-SYBEX,39 a
position now held my Lord Coe. AMT-SYBEX is an IT supplier to the NHS. Former London
Mayoral candidate Steven Norris is their chairman who sits on the Transport for London
board. William Hague received £20,000 in donations from Bruce Ferguson MacFarlane, 40
who is a founding director of MMC Ventures, 41 which part-owns The Practice Plc that run 60
GP surgeries and further clinical assessment and treatment services across the NHS. 42
25. Philip Hammond
Is a beneficiary of a trust who owns a controlling interest in healthcare and nursing home
developer Castlemead Ltd. In 2008 he had shares in the company, of which he was a
director from 1993-1995. The Castlemead website states: 'By building partnerships with GPs
and PCTs we are able to offer a range of design and procurement solutions in particular via
the 3PD (Third Party Developer) route...Castlemead has an excellent reputation for working
with the NHS and as a long term investor in the sector, endeavours to build a positive
working partnership with all stakeholders in a project.’ 43 44
26. Mark Harper
Forest of dean: Electoral commission records show his constituency office received £5,000
on 09/02/2010 from Circle investor Mr Robin Crispin Odey just 3 months before the general
election. 45
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27. Nick Herbert
MP for Arundel & South Downs – Electoral Commission records show he received donations
from Caroline Nash - Ms Nash is the wife of John Nash who also funded Lansley's office
when he was shadow health minister. He was Chairman of Care UK at the time. The
donations were £15,000 in 2008 and in 2009. Founder of free market think tank Reform,
which is part-funded by companies involved in private health. 46
28. Jeremy Hunt
MP for South-West Surrey. Received donations of £32,920 from U.S-based hedge fund CEO
Andrew Law. Mr Law is the CEO of Caxton Associates who as of November 2011, owned a
market value of $217.659 million in healthcare. He is also funder and board member of
Social Finance Ltd, a company which invents new ways to bring finance into public services,
and is pioneering the first Social impact Bond for the NHS. Andrew Law has given
£1,229,677 to the Conservative party. 47 48
29. Margot James
Stourbridge: Co-founded public relations company, Shire Health Group. 49 The company was
sold to business partner Ogilvy & Mather for £4 million in 2004, with the Conservative MP
Margot James appointed Head of European Healthcare for marketing parent WPP Group.
She stood down from WPP in 2008. WPP are a marketing giant with a massive list of
healthcare clients. 50 One of their companies, ‘Grey Healthcare Group, boasts having 14 of
the top 15 pharmaceutical companies as their clients. 51
30. Sajid Javid
Conservative MP for Bromsgrove – Received £11,000 from Moundsley Healthcare Ltd
registered52 on May 29th 2013. Electoral Commission Moundsley Healthcare Ltd run
Moundsley Care Village Ltd, which is a nursing and residential care home. 53
31. Jo Johnson
Orpington. According to the electoral Commission - the brother of Boris Johnson received
£6,000 on 19th July 2010, to his constituency office from Robin Crispin Odey an investor in
circle who run Hitchingbrooke hospital. 54
32. Kwarsi Kwateng
Worked for Odey Asset Management hedge fund as an analyst who invest in Circle health
who run the Hitchingbrooke hospital. The hedge fund is run by Robin Crispin William Odey
who has donated to the Conservative party since 2007. Mr Kwateng received £10,000 from
Odey Asset Management on 12th September 2011 for consultancy work for political advice to
asset managers, which included ‘domestic affairs’. 55
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33. Mark Lancaster
MP Milton Keynes North – Former Non-Executive director Management consultant giving
advice on strategy and business to property venture capital Company Palmer Capital
Partners Ltd. Palmer capital have funded Danescroft Commercial Developments Limited.
Danescroft’s main areas of operations are the Midlands and South of England, focusing on
office and mixed use development and more specialist sectors such as local/district centres
and healthcare. (Resigned 4 September 2012) but received a donation of £4,000 from
Palmer Capita, which was registered in 13th March, 2013. 56 57
34. Dr Phillip Lee
MP for Bracknell – Recently paid in a capacity as a freelance Doctor for Medical Solutions
Ltd, who provide medical cover for events, including blood & Organ transport, ambulances,
life boat crew and mobile treatment centres. 58 59
35. Oliver Letwin
Conservative MP for West Dorset - in 2008, was a non-executive director of N.M. Rothschild
Corporate Finance Ltd up until 2009. Rothschild Group are one of the world's largest
investment companies and which invest heavily in healthcare. In 1986 he followed Redwood
to the merchant bank N.M. Rothschild & Sons, succeeding him as head of the firm's
International Privatisation Unit. He was a director of N.M. Rothschild & Sons from 1991 to
2003 and a non-executive director from 2005 to 2009. In 1988, he co-wrote the publication
‘Britain’s Biggest Enterprise – ideas for radical reform of the NHS’. 60 61 62
36. Peter Lilley
Hitchin and Harpenden MP, Non-Executive Director of management software and systems
company Idox plc. Idox provides local authorities with software & managed services,
including the NHS Health Libraries Group, NHS Education for Scotland. TfPL part of the Idox
Group, is a recruitment, training and consulting company, whose clients include NHS and
private healthcare. 63 64 65
37. Tim Loughton
MP for East Worthing and Shoreham - Received £350 from Cumberlege Connections for
training sessions. Cumberlege Connections, a political networking firm that works
"extensively" with the pharmaceutical industry. Received two lots of £300 in May, July 2013
for training session for Cumberlege Eden and partners. The company is co-owned by
Conservative, Baroness Cumberlege, which went on to gain revenue developing CCGs
made possible by the Health and Social care Act. 66
38. Mary Macleod
MP for Brentford and Isleworth was previously a senior executive at Andersen
Consulting/Accenture specialising in Banking and financial services as a senior executive.
Accenture has gained from PFI contracts. 67
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39. Francis Maude
MP for Horsham – was a director of Huntsworth plc in May 2005, a PR consulting company
run by Lord Chadlington, and which has funded the Conservative party since 2008.
Huntsworth plc are a group of companies, one of which is called Huntsworth Health, who are
part of a lobbying group Healthcare Communications Association, who comprise of
Communication groups involved in health and pharmaceutical companies. 68
Maude was Non-executive chairman of advertising group ‘The mission Marketing Group’.
One of their agencies, Bray Leino Vivactis was also established as Healthcare sector
specialists and a new expert team was created via a firm co-operation with the mainland
European Healthcare Group, Vivactis.
Another company Maude was a non-executive director of, is a web management software
provider called, Mediasurface, whose product Morello CMS is used by Astrazeneca and the
NHS. The company was acquired by content management solutions, Alterian, in 2008. 69
40. Maria Miller
Former director of Grey's Advertising Ltd, an advertising and brand company who work
extensively with clients in the healthcare sector. Former director of the Rowland Group,
which became Publicis Consultants, who are also a marketing company working extensively
with private healthcare. 70 71
41. Andrew Mitchell
MP In 2008 was a Senior Strategy Adviser to Global management and technology company,
Accenture, who have worked extensively with private healthcare companies and the NHS.
Pulled out of failed NHS I.T. programme, and gained form PFI contracts. In 2008 was a
director of Financial Advisory and Asset Management company Lazard & Co, who work in
the Healthcare and life sciences sector. 72 73
42. Penny Mordaunt
Became an Associate for Hannover Communications in 2009, which provides services
across the spectrum of corporate communications, media relations and public affairs for
businesses and public sector bodies. The company work in healthcare and states: ‘So
whether you are seeking to shape the policy and operating environment, defend or
reposition your organisation, or drive sales and uptake for your products and services hanover can help you discover new ways to achieve success.’ The press release said:
'Penny Mordaunt, joined hanover as an Associate to work on a range of healthcare clients
delivering public affairs and corporate communications programmes. Key clients include
sanofi-aventis, Schering Plough and HEART UK, where Penny will be providing senior
strategic counsel.' 74
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43. Brooks Newmark
Braintree MP: Prior to entering politics, Mr Newmark was a senior partner that provided
research and advice on investment opportunities in the UK and Europe to Apollo
Management LP, both independently and through Telesis Management Ltd. The former are
a private equity company, which invests in the healthcare industries. Is a ‘Limited Partner’ in
The Allele Fund, which invests primarily in healthcare startups. He is a Limited partner. 75 76
44. Jesse Norman
Hereford and South Herefordshire. Received payment given to charity for speaking at a
Quiller event. Quiller Consultancy. Quiller lobbyist George Bridges, friend to George
Osborne and Cameron’s former election campaign manager, as well as Theresa May’s exchief of staff, and an ex-strategist for the Chief Medical Officer. Quiller lobbies for among
others, Capita, the enormous outsourcing firm which has its eye on running NHS Direct, and
a private equity firm heavily invested in health. Quiller is owned by Huntsworth Group who
are owned by Lord Chadlington. According to the Electoral Commission, Mr Norman
received £5,000 on 30th June 2009 from Circle healthcare investor Crispin Odey to his local
Hereford constituency. 77 78
45. Stephen O’Brien
Eddisbury MP: Stephen O’Brien’s office received three payments totalling £40,000 from
Julian Schild. Mr Schild’s family made £184million in 2006 by selling hospital bed-makers
Huntleigh Technology.
In addition to this, Mr Julian Schild, of London, has provided financial support for research
purposes, particularly in relation to an inquiry which Mr O'Brien was conducting on behalf of
the Conservative Party into the NHS IT programme. (Registered 19 May 2008) - The MP for
Eddisbury claimed the report of his links to the money donated by Schild was nothing more
than a smear campaign as the details had been in the register of interests for ages. 79
46. George Osbourne
Received donation through Conservative Campaign Headquarters to run his office from
Julian Schild. Julian Schild’s family made £184 million in 2006 by selling hospital bedmakers Huntleigh Technology. A key figure in the Tory's strategy team has also come from
the lobbying world. George Bridges, who now works closely with George Osborne, used to
be employed by Quiller, which keeps its list of clients secret. Quiller is owned by Huntsworth,
a public relations firm headed by Lord Chadlington, president of David Cameron's
Oxfordshire constituency of Witney. 80
In 2008 received support for developing policy from The Boston Consulting Group who work
extensively in healthcare - their website states: ' BCG’s deep experience in the health care
industry extends to having a sector dedicated specifically to payers and providers. Our
collaborative network of professionals allows us to share relevant expertise that can benefit
organizations involved in the financing, management, and delivery of health care services.' 81
82
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In April 2011, the Boston Consultancy Group produced a press release announcing the
appointment of Dr. Graham Rich as Director of Health Services stating: ‘We are delighted
that Graham is joining us as we continue to expand our team and range of advisory services
to the NHS.’ Further support in policy development came from accountancy firm, Smith and
Williamson, who do accounts in all sectors including Medical and healthcare. Additional
policy development came from accountants Grant Thornton, whose website states: 'Within
the public sector, we advise at all levels of the UK healthcare system from central
government to regulators and providers, as well as clients in the social care sector.' 83 84 85
47. Richard Ottaway
MP for Croydon South. 9-11 July 2007, visit to the USA to attend seminars and meetings
with elected US officials and policy forums. His return flight and accommodation were
financed by Atlantic Bridge and registered 4 years late on 20th October 2011. His reasoning
for the late registration: “I have no idea why this was not done in 2007 after the visit.' 'It very
much falls into the ‘cock up’ category of human error.' 'It was a low key, short visit 4 years
ago when I was an opposition backbencher. Meetings were held with members of the
Republican Administration and some policy forums. I have very little precise recall of the
visit.' Atlantic Bridge is a former charity founded by Liam Fox, who made a speech to Atlantic
Bridge in 2003 asked: “How Much Health Care Can We Afford?” Members of the Galen
Institute, a think tank which promotes “free market ideas in health”, attended its conferences
while the failed bank Lehman Brothers, sponsored at least one event, as did the powerful
neocon think tank the Heritage Foundation. (Guardian). 86
48. Priti Patel
MP for Witham In 2000, worked for drinks company Diageo (See Andrew Lansley), before
joining Weber Shandwick, becoming a director of public affairs. Weber Shandwick was
created and built by Lord Chadlington and has a specialist healthcare focus with companies
including Astra Zeneca, Pfizer, and Roche, and also the NHS. 87 88
49. John Redwood
Wokingham: Chairman of Investment Committee of Evercore Pan-Asset Capital
Management Ltd. Evercore is involved in huge healthcare deals, and has shares in the
company. In 2008, he gave a speech at a working lunch to Gerson Lehrman Group, who
provide access to a global network of more than 55,000 experts from across the entire
healthcare industry including physicians, researchers, scientists, and healthcare industry
executives. 89 90
Member of the advisory board of EPIC Private Equity. ‘EPIC Private Equity invests £2-10
million in distressed, growth or buyout opportunities. It will consider most industry sectors,
including consumer, retail, manufacturing, financial services, healthcare, support services
and media industries.’ EPIC Private Equity part owns Pharmacy2u, the UK’s largest
dedicated Internet and mail order pharmacy. 91 92
In 1988, he co-wrote the publication ‘Britain’s Biggest Enterprise – ideas for radical reform of
the NHS’. 93
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50. Jacob Rees-Mogg
MP for North-East Somerset: Partner of Somerset Capital Management LLP, who have
Redwood Emerging Markets Dividend Income Fund as a client, which invests in Healthcare.
Has shares in Lloyd George Management Ltd; investment management, who invest in
Healthcare. According to the electoral Commission, he received £2,000 to his constituency
office on the 14th April, 2010 from Mr Robin Crispin Odey, a hedge funder who has invested
in Circle healthcare. 94 95
51. Malcolm Rifkind
Chairman of Advisory Board, L.E.K. Consulting LLP, which specialises in helping private
healthcare companies identify "growth and new business development" and "opportunities
with the government". Non-executive director of Unilever, Unilever Ventures joined with a
company called Vectura to form a pharma arm to their company. 96 97
Non-Executive Director of Adam Smith International; which has described the NHS as a
"centralized tax-funded monopoly". Instead it argues that the UK should "shift the balance of
healthcare spending away from tax and more to the individual." At the same time, it says "we
need to transform today’s state monopoly providers into independent, competitive ones" - ie
private for-profit healthcare providers. In addition they have produced a couple of reports on
the promotion of dismantling the NHS called: The NHS need for radical reform, From cradle
to grave: The death of the NHS?, and Good sense on the NHS. 98 99 100
Non-Executive director of medical imaging company, Alliance Medical Group from January
2014. Receives £5,000 a month for 10 board meetings a year. They provide services to the
NHS and to private patients. 101
52. Amber Rudd
Was selected for Hastings and Rye in 2006 and she moved to the old town in 2007. In 2008,
her office received £3,000 from Andrew Law. Mr Law is the CEO of Caxton Associates who
as of November 2011 owned a market value of $217.659 million in healthcare. Andrew Law
has given £231,530 to the Conservative party, all but £3,000 of this in 2012. 102 103
53. David Ruffley
MP for Bury St Edmunds was a strategic advisor to Partnership Group Holdings Limited.
Through it’s website, it offers residential care fee insurance, stating: ‘While the state can help
with some costs, eligibility for help is limited and many people find themselves over the
threshold for support so it is important to be aware of financial options available to you.’ 104
105
The company is a subsidiary of PAG Holdings Limited, which is majority owned by Cinven
Funds. According to its 2010 annual report, they initiated a direct sales channel for care
annuities, as well as ‘provide competitive loans to people with impaired lives.’ On its website
it states: ‘Cinven has been involved in European healthcare over a 20-year period and
invests in market-leading, cash-generative companies.’ Cinven is a leading buyout firm, who
bought 25 private hospitals from Bupa. Other UK investments include. Spire Healthcare, who
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run private healthcare hospitals, and whose clinical director Jean-Jacques de Gorter said the
use of private sector would spiral as a result of Andrew Lansley’s reform proposals. General
healthcare group, which runs healthcare services, and whose group includes: BMI
healthcare. 106 107
Mr Ruffley also received a £10,000 donation from Caroline Nash in 2009 - Ms Nash is the
wife of John Nash who also funded Lansley's office when he was shadow health minister.
He was Chairman of Care UK at the time. Now Care UK has won contracts in his
constituency. 108 109
54. Mark Simmonds
Mark Simmonds, who was a shadow health minister when the controversial reforms were
drawn up, was paid £50,000 a year to work just 10 hours a month as “strategic adviser” to
Circle Health, the first firm to win control of an NHS hospital. 110
Mark Simmonds took up his role at Circle just five months after he had finished his role as
Shadow Health Secretary. He also accepted a US trip to Boston worth £4,982 from private
health provider BUPA. 111 112
Mark was also a member of the All Parliamentary Health Group acting as a co-chair to
Conservative Peer Baroness Cumberlege. 113
55. Chris Skidmore
Conservative MP for Kingswood who sits on the Health Select Committee received a
payment of £3,500 for 4 hours work - giving speeches to STAC Consultancy http://www.stacconsultancy.com/ which specialises in the launch of pharmaceutical products, strategic
branding and medical education. 114
Chris
Skidmore's
family
also
owns
a
company
called
Skidmore
Medical http://www.skidmoremedical.com/, which appears to be solely selling a physiologic
Vascular testing equipment. The company made two donations to Chris Skidmore’s office of
£7,500 and £1544.25 in June 2010 and October 2009. 115
Donations: Received £5,000 to his office in run up to the election in 2010 from Caroline
Nash, the wife of former Care UK chairman John Nash - electoral commission.
56. Julian Smith
Julian Smith: MP for Skipton received a donation from Principle healthcare Ltd £2,500 in
September 2014 - who produce Minerals, vitamins and supplements. The company joined
the Parliamentary and Select Committee in March 2013116
57. Nicholas Soames
MP Mid Sussex: Senior Adviser, to MMC Group; Marsh & McLennan an insurance financial
services company. In a review for the Department of Health of the NHS litigation Authority -
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written by Marsh Inc, it recommended involving opening up clinical negligence cover over to
private insurers. Zurich Financial Insurers said they didn't have the expertise but the Marsh
review envisaged opening up a dialogue which might eventually give them the information
they needed. The DoH accepted the large majority of Marsh's recommendations. 117 118
According to the electoral Commission, his office received £2,000 on 11th May 2010, from
Crispin Odey who is an investor of Circle Health. Marsh is a risk and strategy management
company that amongst other services helps ‘hospitals, insurers, pharmaceutical companies
and industry associations understand the implications of changing policy environments". In
the UK, Marsh delivers risk and insurance solutions to key areas of the healthcare industry,
including major private hospital groups, some of the UK’s largest care providers, over 30
foundation trusts, medical technology providers and other healthcare service providers and
funders.
58. John Stanley
The MP for Tonbridge and Malling is a consultant on financial services to investment
company,
FIL
Investment
Management
Ltd,
who
invest
in
healthcare.
Donations: Fidelity Investment Management has given £495,000 to Conservative Central
Party between 2004 and 2008. Electoral Commission. Fidelity own nearly a million shares in
ATOS. Fidelity also has shares in AXA. 119 120 121
59. Andrew Tyrie
In 2008 attended the Ryder cup in his capacity as 'Secretary of the Parliamentary Golf
Society.' His travel and accommodation was paid for by U.S. healthcare services company
Humana Europe. Humana started UK operations in 2006, in response to the framework for
procuring external support for commissioners. They won two contracts with NHS Barnsley,
and NHS East of England but pulled out of UK. 122
60. Robin Walker
MP for Worcester. Local office received a £2,000 donation from Redwood Care Homes
Limited Registered on March 2014. Redwood Care Homes own multiple care homes. Two
of their care homes are listed as not ‘caring for people safety & protecting them from harm.’
123
61. David Willetts
Conservative MP for Havant and the Minister of State for Universities and Science. Former
director in 2008, and has shares in Sensortec a company that owns Vantix which was
working on a contract for a new product that can quickly detect MRSI. In 1993 when
Baroness Bottomley as Secretary for Health wanted to privatise wards and hospitals, which
Willetts supported, and was reported as saying: ‘private companies will want to change NHS
labour practices, and not want to negotiate with NHS Unions.’ Had financial support paid to
his research account by HGCapital private equity manager, Ian Armitage in 2008 HGCapital funds healthcare companies. 124 125 126 127
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62. Rob Wilson
Conservative - In 2010, the MP for Reading East had registered shares in Vital Imaging, a
private screening company. 128
63. Tim Yeo
In 2008 attended the Ryder cup. His travel and accommodation was paid for by U.S.
healthcare services company Humana Europe. (See Andrew Tyrie)
64. Nadhim Zahawi
MP for Stratford-on-Avon. Is a non-executive director of recruitment company SThree, who
specialise in the Pharmaceutical & Biotechnology sector. The Company provides both
permanent and contract specialist staffing services in the UK and Europe in a few sectors,
including through Real Staffing, Pharmaceutical & Biotechnology and Healthcare. This
element of the group also finds roles for areas of the NHS. 129 130
The company has gone on to gain at least £2.6 million through the new Clinical
Commissioning Groups. 131
On the 4th April 2011 on a debate on the NHS ‘reforms’, When health secretary Andrew
Lansley announced a pause in the Health and Social Care Bill, Zahawi reassured him that
GPs were “absolutely passionate” about the reforms and described the plans as a “brilliant
piece of legislation”. 132
Liberal Democrat MPs (7)
1. Menzies Campbell
North East Fife: Non-executive director of Scottish American Investment Company plc since
2007. The investment company took over one of the care homes when Southern Cross
collapsed. His spokeswoman said: "It is Sir Menzies' understanding that negotiations for
another care provider to take over the running of the care home in question are at an
advanced stage. Sir Menzies has no further comment to make." The holdings are listed here
including healthcare. 133 134 135
2. Vince Cable
MP for Twickenham and Secretary of State for the Department of Business, Innovation &
Skills. Received a donation of £2,000 from Chartwell Care Services, who are 100% owned
by Chartwell Health & Care PLC who own Chartwell Private Hospitals plc that provide day
case surgery to NHS patients. 136 The ultimate owner is Normandy Group Ltd.
137
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PRIVATE & CONFIDENTIAL – DO NOT PASS TO UNAUTHORISED PERSONNEL
3. Nick Clegg
MP for Sheffield, Hallam received a donation to his constituency office for £5,000 from Alpha
Medical Consultancy - has nationwide affiliations with premium providers of diagnostic and
rehabilitation services. Alpha’s partners offer high quality medico-legal rehabilitation. 138 139
4. Simon Hughes
MP for Bermondsey and Old Southwark. Received £60,000 donation to his constituency
party from the founder of Alpha Hospitals a private hospital firm. 140
5. Stephen Lloyd
MP for Eastbourne. Received £544.92 aggregated over time for office equipment from
Platon Medical Ltd - who provides Ear, Nose and throat devices. 141 142
6. Robert Smith
MP for West Aberdeenshire and Kilncardine - Has shares in pharmaceutical company
GlaxoSmithKline. Shares in Legal and General, which offers medical insurance. 143
7. Jo Swinson
MP for East Dunbartonshire. Received a donation of £2,000 September 2013 from private
optician company, Peter Ivins Eye Care. 144
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Appendix – Health Secretary Jeremy Hunt - donations
Jeremy Hunt, the hedge fund boss, and the new NHS private finance scheme that will
pay bankers for deaths at home
In a nutshell
Jeremy Hunt has received donations from a major hedge fund boss, Andrew Law, with multimillion healthcare investments. Law sponsors Social Finance Ltd., which is pioneering ‘pay
for success’ bonds to bring new private finance into the NHS. The pilot scheme is about to
be launched in Sandwell and West Birmingham, under a Health and Social Care Act tender
for ‘end of life’ services that could create mega profits for private investors – and perverse
incentives to let vulnerable people die at home.
Key points
Jeremy Hunt and the hedge fund boss

Andrew Law is a major hedge fund boss with multi-million healthcare investments.

Law has donated over £600,000 to the Tories; including two cash donations directly to
Health Secretary Jeremy Hunt’s constituency.
Social Finance Ltd.

Law is a board member and funder of ‘Social Finance Ltd.’, which pioneers new
techniques to bring private finance into public services.

One of Social Finance Ltd’s inventions is ‘Social Impact Bonds (SIBs)’, also called ‘pay
for success’ bonds, which it is promoting to bridge the NHS ‘funding gap’.
The first NHS ‘pay for success’ bond: paying for home deaths

The first NHS Social Investment Bond is currently being developed by the Department
of Health and Social Finance Ltd. This will involve a project to run ‘end of life care’ in
Sandwell and West Birmingham, tendered out under the Health and Social Care Act.

Investors in the project will receive higher profits if increased numbers of people die at
home, and there are fewer emergency hospital admissions. This could create perverse
incentives, as private investors stand to win if patients are left to die without hospital
treatment.
Mega profits

Social Investment bonds could make investors big profits out of the NHS, with interest
rates perhaps as high as 12%.

The biggest private investor in SIBs is global investment bank Goldman Sachs.
Including Law, at least seven Social Finance board members and executives are exGoldman Sachs.
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PRIVATE & CONFIDENTIAL – DO NOT PASS TO UNAUTHORISED PERSONNEL
Detail with references
Andrew Law
Andrew Law is a major hedge fund boss with multi-million healthcare investments.
Andrew Law is Chairman and CEO of Caxton Associates LP, a global hedge fund based in
New York, with offices in London and elsewhere. Caxton is a major health investor, with over
$210 million direct investment in global healthcare companies (as of 2011).145 Its founder
Bruce Kovner is a major donor to the Republican Party and conservative think tank
American Enterprise Institute (AEI).146147
Law has an unusual background for a hedge fund boss. He is English, from Cheshire, went
to state school, and supports Manchester City. He has worked at Caxton since 2003, and
took over as CEO when Kovner retired in 2011. Law’s previous job was at Goldman Sachs,
where he was head of fixed income trading (i.e., trading in bonds and other forms of debt).148
Law and Jeremy Hunt
Andrew Law has donated over £600,000 to the Tories; including two donations directly to
Jeremy Hunt’s constituency.
Law has made 46 donations to Conservative party central office between December 2008
and June 2014, totalling well over £1,229,677.
Law has also donated directly to the South West Surrey constituency on ten occasions: from
2004 to 2014 giving £32,920. This is the constituency of Jeremy Hunt, Secretary of State for
Health.
Social Finance Ltd
Law is a board member and funder of ‘Social Finance Ltd.’, which invents new ways to bring
private finance into public services.
Andrew Law and his wife Zoe have a charitable foundation called ‘Law Family Charitable
Foundation’. According to its website, the foundation supports 8 charities. One of these is
Social Finance Ltd., of which Law is also a board member and a shareholder.
Social Finance Ltd was set up in 2007. As the Laws’ foundation describes it, “Social Finance
was set up in 2007 to help build a social investment market in the UK.”149 On its own
website, Social Finance says it was set up “to understand the funding shortfall faced by the
social sector”. It is known for having designed the £600 million ‘Big Society Capital’ fund
launched by David Cameron in 2010, and having invented ‘Social Impact Bonds’. Social
Finance has two sister companies in the US and Israel. Social Finance works very closely
with global investment firms, noticeably Goldman Sachs (see below).
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Social Finance Ltd has a number of project areas including ‘health and social care’. It
describes its work in health as follows: “We support commissioners and providers to develop
alternative models of funding and delivering transformative care services.”150
Social Investment Bonds
One of Social Finance Ltd’s main projects is the development of Social Impact Bonds (SIBs).
It is promoting these as a new funding system for the NHS, which will bring in private lending
to close the looming investment ‘gap’.
In a social impact bond, a public body borrows money from private investors by issuing a
bond. The catch is that the rate of return rate on the bonds is linked to the ‘impact’ or
performance of a particular project.151 In the US these have been called ‘pay for success’
bonds.
The first SIBs were tested in the criminal justice system. The first ever, developed by Social
Finance Ltd, was issued in September 2010 for Peterborough prison. The ‘impact’ measure,
in this case, was linked to reoffending rates. Since, then, according to Social Finance, there
have been 13 further SIBs in the UK, and around 100 worldwide. (ibid)
Social Finance aims to introduce SIBs to the NHS. In 2012 it commissioned Professor Paul
Corrigan (former health advisor to Tony Blair) to write a report promoting SIBs as a new
model for NHS funding.152 On 8 October 2014 Social Finance’s founder and development
director Toby Eccles spoke at a Nuffield Foundation event on SIBs and other forms of ‘social
investment funding for a sustainable NHS’, chaired by Mike Farrar, recent former Chief
Executive of the NHS Confederation. This event is intended to lead to a report that will
advocate new ways to meet the NHS ‘funding shortfall’ beyond the public purse. SIBs could
be at the heart of a new agenda for private debt finance of the NHS.153
The first NHS Social Investment Bond
Social Finance is now working with the Department of Health on the first pilot NHS Social
Investment Bond – for ‘end of life care’ in Sandwell and West Birmingham.
Sandwell and West Birmingham CCG is currently tendering for providers to take over end of
life care services in its area. The CCG says the contract will pay on ‘an outcomes only basis’
and that it ‘anticipates’ that bidders ‘will need to seek investment via a Social Investment
Bond (SIB) in order to fund their activity.’ 154
Social Finance worked on the design of this SIB. It was employed in 2013 to make the initial
plans for the scheme, together with Marie Curie cancer care. Other ‘partners’ involved were:
the NHS Confederation, NHS Clinical Commissioners, Social Investment Business, law firm
Bevan Brittan, and Unipart. The project was funded by the Social Investment Business and
supported by the Department of Health.155
The basic idea is that investors in the end of life SIB will be paid a return that depends on
two results:


The number of patients who die at home, rather than in hospital
Reduction in ‘unnecessary’ emergency hospitalisations
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PRIVATE & CONFIDENTIAL – DO NOT PASS TO UNAUTHORISED PERSONNEL
The moral rationale for the scheme, as outlines in Marie Curie’s statement, is that it will help
people die at home, which is most people’s preferred choice. 156 The financial rationale is
that the project, if successful, will save money by reducing hospital care costs.157
The danger is that it may create perverse incentives: investors will stand to gain if people are
left to die at home rather than being hospitalised for emergency treatment.
The tender is currently open, with an initial deadline (for submission of pre-qualification
questionnaires (PQQs) of 30 October.158
SIBs mean big money
Social Investment bonds could make private investors mega-profits out of the NHS, with
interest rates as high as 12%.
SIBs are being spun as ‘philanthopy’ – whereas in fact they can be very profitable business
opportunities.
Information on profit rates for UK SIBs is not widely available. However, The Guardian
newspaper reported that in the Greater London Authority’s 2012 SIB for homelessness
reduction Social Finance Ltd “raised £3.1m from investors, who can expect a return of 8%12% a year, if the scheme meets its targets.”159 The Evening Standard reported on the same
deal that investors “will receive a return of up to 12% a year if it is deemed a success.”160
Data on US SIBs is more transparent. For example, in the ‘Massachusetts Juvenile Justice
Pay for Success Initiative’ SIB, the public authority announced that the senior lender,
Goldman Sachs, invested $9 million. Goldmans will receive 5% annual interest on the loan if
the project meets its basic target. If higher success targets are reached, it will get a further
bonus of up to $1 million.161
Even 5% is a very high rate for a public sector bond. For example, currently US 5 year
Treasury bonds yield 1.34%162; and UK government 5 year bonds yield 1.37%.163
It could be argued that, unlike standard government bond investors, SIB investors face the
extra risk that projects will fail. But Goldman Sachs, at least, thinks the risks are low: the firm
estimated the risk-adjusted return on its first two US SIB investments as a whopping 68%.164
According to Alicia Glen, head of the Goldman Sachs unit involved: "We do these deals to
get strong financial-risk-adjusted returns that have a strong impact." (ibid).
(A key issue here is how ‘impact’ is measured – and by whom.)
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Social Investment Bonds and Goldman Sachs
Global investment bank Goldman Sachs is the biggest private investor in SIBs.
The major investor in Social Impact Bonds is Andrew Law’s old firm – Goldman Sachs.
The first SIB in the US was issued in August 2012 by New York mayor Michael Bloomberg,
to fund a programme at Rikers Island prison. Goldman Sachs provided the finance, $9.6
million.
Lloyd Blankfein, CEO and Chairman of Goldman Sachs, said: “We’re proud to work with
Mayor Bloomberg and his team on this innovative approach to harness private sector
financing for important public initiatives. We believe this investment paves the way for a new
type of instrument that enables the public sector to leverage upfront funding from the private
sector.”165
Goldmans has since funded a number of further US SIBs, and launched a $250 million
dedicated ‘Social Impact Fund’ to invest in the new sector, the first of its kind.166 This is still
small potatoes by Goldman standards, but could have massive potential if the model takes
off.
It has not been publicly announced whether Goldman Sachs has invested in SIBs in the UK.
It has been announced that unnamed ‘private investors’ have. Unlike the US, many ‘third
sector’ investors were involved in early UK SIBs; but Social Finance has said that the aim is
to develop a ‘wider investor base’ as the market becomes established, including ‘more
private individuals, banks and financial institutions, pension funds and corporate social
responsibility funds’.167
Social Finance Ltd and Goldman Sachs
There is a web of connections between Social Finance, Goldman Sachs, and other major
private investors.
Social Finance Ltd’s biggest shareholder is a charitable trust called Hadley Trust, set up by
computer company entrepreneur Philip Hulme. Hadley Trust’s shares and other investments
are managed by Goldman Sachs.
Besides Andrew Law, at least another six Social Finance board members and executives
are former Goldman Sachs employees:
David Blood. Board member of Social Finance Ltd. Co-founder and board member of Social
Finance US. Co-founder and Senior Partner of Generation Investment Management.
Worked for 18 years at Goldman Sachs, and was co-CEO and CEO of Goldman Sachs
Asset Management from 1999-2003.
Peter Wheeler. Board Member of Social Finance Ltd. Formerly Goldman Sachs Partner and
Managing Director. 168
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PRIVATE & CONFIDENTIAL – DO NOT PASS TO UNAUTHORISED PERSONNEL
Bracebridge H. Young, Jr. Chair of the Board Of Social Finance US. Formerly Partner and
head of European Debt Capital Markets at Goldman Sachs.
Sonal Shah. Vice Chair of the Board of Social Finance US. Former Vice President at
Goldman Sachs.
Fiona Miller Smith. Chief Operating Officer at Social Finance, previously worked at Goldman
Sachs.169
Tim Rothery. Associate Director, Social Finance Ltd. Previously Vice President at Goldman
Sachs.
Another important (but not Goldman Sachs) connection:
Sir Ronald Cohen. Co-founder and director of Social Finance US. Chair of Big Society
Capital. Co-founder and chairman of Apax Partners, the global private equity firm that owns
32% of General Healthcare Group (the UK’s biggest private hospital company, which has
major NHS contracts).
1
http://www.theguardian.com/politics/2014/oct/03/healthcare-companies-links-tories-nhs-contracts
http://www.mirror.co.uk/news/politics/2011/01/19/nhs-reform-leaves-tory-backers-with-links-to-privatehealthcare-firms-set-for-bonanza-115875-22859373/
3
http://www.telegraph.co.uk/news/newstopics/mps-expenses/6989408/Andrew-Lansley-bankrolled-byprivate-healthcare-provider.html
4
http://www.bridgepoint.eu/en/news/press-releases/2010/recommended-proposals-for-the-acquisition-ofcare-uk-plc-by-bridgepoint/
5
http://www.mirror.co.uk/news/politics/2011/01/19/nhs-reform-leaves-tory-backers-with-links-to-privatehealthcare-firms-set-for-bonanza-115875-22859373/
6
http://www.telegraph.co.uk/news/newstopics/mps-expenses/6989408/Andrew-Lansley-bankrolled-byprivate-healthcare-provider.html
7
http://www.channel4.com/news/andrew-lansleys-nhs-plans-still-in-good-health
8
http://www.jpmorgan.com/tss/General/Healthcare_/1102380191740
9
http://www.jpmorgan.com/tss/General/Healthcare_/1102380191740
10
http://www.penna.com/news-and-events/Detail/hmfa-and-penna
11
http://www.publications.parliament.uk/pa/cm/cmregmem/1782/bellingham_henry.htm
12
http://www.squiresanders.com/london/
2
13
http://www.squiresanders.com/de/underperforming_nhs_trusts_challenges_and_opportunities_for_the_priv
ate_sector_01-30-2009/
14
http://www.paconsulting.co.uk/industries/government-and-public-services/supporting-nhs-clients-throughtheir-reconfiguration-journey/
15
http://www.paconsulting.co.uk/industries/government-and-public-services/transforminghealthcare/helping-organisations-respond-to-the-nhs-transition/
16
http://www.theyworkforyou.com/regmem/?p=10079
17
http://www.mirror.co.uk/news/politics/2011/01/28/tory-party-links-to-private-healthcare-companies115875-22880670/
18
http://www.guardian.co.uk/business/astrazeneca
19
http://www.greenhill.com/index.php?option=com_content&task=view&id=137&Itemid=289
20
http://www.pressreleasepoint.com/hitachi-consulting-uk-enables-london%E2%80%99s-primary-care-trustsmonitor-and-benchmark-performance-online-
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21
http://www.lexcomm.co.uk/our-services/healthcare-communications
http://whoslobbying.com/uk/lexington_communications
23
http://www.publications.parliament.uk/pa/cm/cmregmem/1782/davis_rt-hon-david.htm
24
http://www.agincare.com/news/article/richard-dr
25
http://www.publications.parliament.uk/pa/cm/cmregmem/1782/duncan-smith_rt-hon-iain.htm
26
http://www.google.co.uk/url?sa=t&rct=j&q=baronsmead%20vct-4plc%20healthcare&source=web&cd=1&ved=0CDMQFjAA&url=http%3A%2F%2Fwww.baronsmeadvcts.co.uk%2
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nafGPINqIA&sig2=QxxmiD7VCnpQp2hPaIo48Q
27
http://www.publications.parliament.uk/pa/cm/cmregmem/1782/fallon_michael.htm
28
http://www.ellwoodandatfield.com/nhsbt/
29
http://www.publications.parliament.uk/pa/cm/cmregmem/130507/130507.pdf
30
http://powerbase.info/index.php/Pfizer
22
31
http://powerbase.info/index.php/Liam_Fox_Register_of_Members_Financial_Interests#Register_as_at_28th_
September_2011
32
http://www.ipgl.co.uk/cyprotex/
33
http://www.4d-biomedical.com/
34
http://www.publications.parliament.uk/pa/cm201011/cmhansrd/cm101111/debtext/101111-0003.htm
35
http://www.carematters-uk.com/index.php?page=long-term-care
36
http://www.publications.parliament.uk/pa/cm/cmregmem/1782/freer_mike.htm
37
http://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0CCQQFjAA&
url=http%3A%2F%2Fwww.lek.com%2Fsites%2Fdefault%2Ffiles%2FL.E.K._DeliveringIntegratedHealthcareinthe
Community.pdf&ei=4y5BVOuhL6Gf7ga2o4CAAw&usg=AFQjCNFTsQHRnCyMzTHjYk724j0_D1Gkiw&sig2=Qy0A
MpyPcZs8KCTQ2vHkUA&bvm=bv.77648437,d.ZGU
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http://searchthemoney.com/associate/1060
39
http://www.publications.parliament.uk/pa/cm/cmregmem/080311/memi12.htm
40
http://www.electoralcommission.org.uk/
41
http://www.bloomberg.com/profiles/companies/1885206Z:LN-mmc-ventures-ltd
42
http://www.thepracticeplc.com/
43
http://www.castlemead-ltd.co.uk/
44
http://www.publications.parliament.uk/pa/cm/cmregmem/130507/130507.pdf
45
http://cheltenham-gloucesteragainstcuts.org/2012/05/04/two-gloucestershire-tory-mps-accepteddonations-from-controversial-super-rich-private-health-investor/
46
http://www.electoralcommission.org.uk/
47
http://www.electoralcommission.org.uk/
48
http://wallstcheatsheet.com/stocks/major-healthcare-stock-positions-of-caxton-associates.html/
49
http://www.margotjames.com/about
50
http://www.wpp.com/annualreports/2011/how-were-doing/reports-from-our-operatingbrands/healthcare-communications/index.html
51
http://www.wpp.com/wpp/companies/ghg/office/grey-healthcare-group-new-york/
52
http://www.publications.parliament.uk/pa/cm/cmregmem/130610/130610.pdf
53
http://www.moundsleyhall.com/
54
http://www.electoralcommission.org.uk/ http://www.electoralcommission.org.uk/
55
http://www.electoralcommission.org.uk/
56
http://www.palmercapital.co.uk/about2.php
57
http://www.electoralcommission.org.uk/
58
http://www.outdoormedicalsolutions.co.uk/
59
http://www.theyworkforyou.com/regmem/?p=24765
60
http://www.powerbase.info/index.php/N.M._Rothschild_%26_Sons
61
http://www.powerbase.info/index.php/N.M._Rothschild_%26_Sons
62
http://www.cps.org.uk/files/reports/original/111027171245-BritainsBiggestEnterprise1988.pdf
63
http://www.investegate.co.uk/article.aspx?id=200511020700074778T
64
http://www.tfpl.com/resources/health_sig.cfm
29
PRIVATE & CONFIDENTIAL – DO NOT PASS TO UNAUTHORISED PERSONNEL
65
http://www.publications.parliament.uk/pa/cm/cmregmem/140616/lilley_peter.htm
http://www.publications.parliament.uk/pa/cm/cmregmem/130507/loughton_tim.htm
67
http://www.conservatives.com/People/Members_of_Parliament/Macleod_Mary.aspx
68
http://powerbase.info/index.php/Francis_Maude
69
http://www.publications.parliament.uk/pa/cm/cmregmem/081008/memi19.htm
70
http://www.publicishealthcare.com/en/contactUs.aspx
71
https://www.gov.uk/government/people/maria-miller
72
http://www.publications.parliament.uk/pa/cm/cmregmem/081008/memi19.htm
73
http://www.independent.co.uk/life-style/health-and-families/health-news/nhs-pulls-the-plug-on-its-11bnit-system-2330906.html
74
http://www.hanovercomms.com/downloads/03%20Penny%20Mordaunt%20appointment%20%2016.02.09.pdf
75
http://www.allelefund.com/
76
http://www.publications.parliament.uk/pa/cm/cmregmem/140616/newmark_brooks.htm
77
http://www.spinwatch.org/blogs-mainmenu-29/tamasin-cave-mainmenu-107/5419-lobbyists-in-the-heartof-government
78
http://www.publications.parliament.uk/pa/cm/cmregmem/1782/norman_jesse.htm
79
http://www.chesterchronicle.co.uk/chester-news/local-chester-news/2010/01/28/eddisbury-mp-stephen-obrien-slams-news-of-the-world-for-article-linking-him-to-private-health-care-firms-59067-25700217/
80
http://www.independent.co.uk/news/uk/politics/cameron-fears-candidates-links-to-lobbying-industry1926157.html
81
http://www.bcg.com/expertise_impact/industries/health_care_payers_providers/default.aspx
82
http://www.bcg.com/expertise_impact/industries/health_care_payers_providers/default.aspx
83
http://www.bcglondon.com/about_bcg/graham_rich.aspx
84
http://www.osac.org.uk/accountancyfirm/144/
85
http://www.grant-thornton.co.uk/en/Sectors/Health-Services/Healthcare/
86
in 2003
87
http://www.webershandwick.co.uk/homepage-sections/what-we-are-up-to/158
88
http://en.wikipedia.org/wiki/Huntsworth
89
http://blogs.wsj.com/deals/2009/07/31/the-pharmaceuticals-banker-that-helped-evercore-land-a-4-billionmandate/
90
http://www.glgresearch.com/Council/Healthcare.html
91
http://www.epicprivateequity.com/aboutepe_home.html
92
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93
http://www.cps.org.uk/files/reports/original/111027171245-BritainsBiggestEnterprise1988.pdf
66
94
http://www.google.co.uk/url?sa=t&rct=j&q=redwood%20emerging%20markets%20dividend%20income%20fu
nd%20healthcare&source=web&cd=3&ved=0CHYQFjAC&url=http%3A%2F%2Fwww.redwoodasset.com%2Fdo
c_bin%2FQPD_REMDF.pdf&ei=EZa7T-fHIueX0QXe393gBw&usg=AFQjCNHkhQFNhPFQbNYTkL
95
http://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F00000M9PI&tab=3
96
http://www.lek.com/industries/healthcare-services
97
http://www.publications.parliament.uk/pa/cm/cmregmem/141013/rifkind_malcolm.htm
98
http://www.adamsmithinternational.com/
99
http://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=6&sqi=2&ved=0CGIQFjAF&url=http%3
A%2F%2Fwww.powerbase.info%2Findex.php%2FAdam_Smith_Institute&ei=z928T8m2D4nd8AOG78k7&usg=A
FQjCNH5z-dcFyfEJaBDsRCb9Ejzvgb-mQ&sig2=B4xUxLtVCkjyH1ga3MmfsA
100
http://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=4&sqi=2&ved=0CF0QFjAD&url=http%3
A%2F%2Fwww.adamsmith.org%2Fnews%2Fin-the-news%2Ffrom-cradle-to-grave-the-death-of-thenhs&ei=z928T8m2D4nd8AOG78k7&usg=AFQjCNGmHDQs2Io9J9akdzHmJohfOakHVw&sig2=OzLm4ghumW5zj
NeYdWIzag
101
http://www.alliancemedical.co.uk/who-we-are
102
http://wallstcheatsheet.com/stocks/major-healthcare-stock-positions-of-caxton-associates.html/
103
http://www.electoralcommission.org.uk/
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PRIVATE & CONFIDENTIAL – DO NOT PASS TO UNAUTHORISED PERSONNEL
104
http://parliament.telegraph.co.uk/mpsexpenses/interests/David-Ruffley/mp-10520
https://www.partnership.co.uk/paying-care-fees/http:/www.partnership.co.uk/care/
106
http://www.cinven.com/lib/docs/131233-partnership-annual-report-2010.pdf
107
http://www.guardian.co.uk/politics/2011/apr/19/spire-healthcare-nhs-cuts-boom-private-sector
108
http://www.eadt.co.uk/news/politics/suffolk_county_defends_its_care_home_decision_1_1966896
109
http://www.electoralcommission.org.uk/
110
http://www.mirror.co.uk/news/politics/2011/10/26/tory-mp-cashing-in-on-nhs-break-up-with-second-jobat-health-firm-115875-23515038/#ixzz1dJFD7uKw
111
http://www.parliament.uk/documents/Mr%20Mark%20Simmonds%20MP.pdf
112
http://www.publicwhip.org.uk/mp.php?id=uk.org.publicwhip/member/40103
113
http://socialinvestigations.blogspot.co.uk/2012/04/four-key-members-of-associate.html
114
http://www.publications.parliament.uk/pa/cm/cmregmem/111129/111129.pdf
115
http://www.electoralcommission.org.uk/
116
http://www.principlehealthcare.com/parliamentary-and-scientific-committee.php
105
117
http://www.dh.gov.uk/prod_consum_dh/groups/dh_digitalassets/@dh/@en/documents/digitalasset/dh_132
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118
http://www.ft.com/cms/s/0/17eaba52-57bb-11e1-ae89-00144feabdc0.html#axzz1oVt9kaCI
119
http://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=FIEUOP&univ=U
120
http://investors.morningstar.com/ownership/shareholders-major.html?t=AEXAF
121
http://investors.morningstar.com/ownership/shareholders-major.html?t=AXAHY
122
http://www.ehi.co.uk/news/industry/6575/humana_to_pull_out_of_uk
123
http://www.cqc.org.uk/directory/1-101662163
124
http://www.publications.parliament.uk/pa/cm/cmregmem/120430/120430.pdf
125
http://www.independent.co.uk/news/private-care-sought-for-nhs-bottomley-wants-health-firms-to-takeadvantage-of-relaxed-treasury-rules-1455025.html
126
http://www.independent.co.uk/news/private-care-sought-for-nhs-bottomley-wants-health-firms-to-takeadvantage-of-relaxed-treasury-rules-1455025.html
127
http://www.hgcapital.com/content/portfolio/investments/1/4
128
http://www.mirror.co.uk/news/politics/2011/01/19/nhs-reform-leaves-tory-backers-with-links-to-privatehealthcare-firms-set-for-bonanza-115875-22859373/
129
http://www.sthree.com/en/page/our_brands_and_sectors/
130
http://www.publications.parliament.uk/pa/cm/cmregmem/141013/zahawi_nadhim.htm
131
http://www.mirror.co.uk/news/uk-news/sthree-nhs-reform-firm-links-3236237
132
http://www.totalpolitics.com/print/162072/the-end-of-year-mp-awards.thtml
133
http://www.channel4.com/news/who-are-the-southern-cross-care-home-landlords
134
http://www.bailliegifford.com/documentgateway.aspx?_id=8B61929D-0E76-4E68-B042-D16A4104228C
135
http://www.publications.parliament.uk/pa/cm/cmregmem/141013/campbell_menzies.htm
136
137
https://uk.linkedin.com/pub/steve-woolridge/10/253/440
http://southendccg.nhs.uk/policies/doc_view/582-item-13b-qfpcommittee-april-310714
138
http://www.publications.parliament.uk/pa/cm/cmregmem/141013/141013.pdf
http://www.alphamedical.org/pages/services/diagnosis-rehabilitation.php#
140
http://www.electoralcommission.org.uk/
141
http://www.electoralcommission.org.uk/
142
http://platonmedical.co.uk/
143
http://www.publications.parliament.uk/pa/cm/cmregmem/141013/smith_robert.htm
144
http://www.electoralcommission.org.uk/
145
As of September 30th, 2011, Caxton had investments in healthcare companies with an aggregate market
value of $217.659 million. http://wallstcheatsheet.com/stocks/major-healthcare-stock-positions-of-caxtonassociates.html/
146
http://www.publicintegrity.org/2011/01/05/2232/hedge-funds-bet-heavily-republicans-end-election
147
http://www.rightweb.irc-online.org/profile/American_Enterprise_Institute
148
http://www.ft.com/cms/s/0/0ecc2df4-3679-11e3-8ae3-00144feab7de.html?siteedition=uk#axzz2tfXBS2jy
139
31
PRIVATE & CONFIDENTIAL – DO NOT PASS TO UNAUTHORISED PERSONNEL
149
http://www.lawfamilycharitablefoundation.org/#social-finance
http://www.socialfinance.org.uk/impact/health-and-social-care/
151
http://socialfinance.westgatecomms.com/wp-content/uploads/2014/07/Introduction-to-Social-ImpactBonds.pdf
152
http://www.socialfinance.org.uk/wp-content/uploads/2014/07/A-new-way-to-invest-in-betterhealthcare.pdf
153
http://www.nuffieldtrust.org.uk/talks/social-investment-funding-sustainable-nhs
154
https://www.oppex.com/notice/SELL2WALES_ec9f14af2ead8ab1006559a8495058e2
155
http://www.mariecurie.org.uk/en-GB/Commissioners-and-referrers/Partnerships-and-innovations/Socialinvestment-in-end-of-life-care/
156
http://www.mariecurie.org.uk/en-GB/Commissioners-and-referrers/Partnerships-and-innovations/Socialinvestment-in-end-of-life-care/
157
http://www.local.gov.uk/documents/10180/5920754/Introduction+to+Social+Impact+Bonds++Health,%20Social+Care+and+Addiction/293f328a-c5d3-4a59-9ea8-9ad5370fd7e3
158
https://www.oppex.com/notice/SELL2WALES_ec9f14af2ead8ab1006559a8495058e2
159
http://www.theguardian.com/society/2012/dec/11/homelessness-payment-results-social-bond
160
http://www.standard.co.uk/news/london/new-funding-scheme-to-aid-londons-rough-sleepers8346290.html
161
http://www.thirdsectorcap.org/wp-content/uploads/2014/01/MA-JJ-PFS-Frequently-Asked-Questions.pdf
162
http://www.bloomberg.com/markets/rates-bonds/government-bonds/us/
163
http://www.bloomberg.com/markets/rates-bonds/government-bonds/uk/
164
http://uk.reuters.com/article/2013/11/12/us-goldman-social-impact-bond-analysisidUKBRE9AB0ZD20131112
165
http://www.goldmansachs.com/what-we-do/investing-and-lending/urban-investments/case-studies/socialimpact-bond-pdf.pdf
166
http://www.ft.com/cms/s/0/d7086aee-4493-11e3-a751-00144feabdc0.html?siteedition=uk
167
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/217375/social-impactbond-hmp-peterborough.pdf
168
http://www.socialfinance.org.uk/about-us/board-and-team/
169
http://www.socialfinance.org.uk/staffmember/fiona-miller-smith/#sthash.kUR7hDqj.dpuf
150
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