CVC, which is one of three private equity firms that back Saga, is thought to be joining forces on a potential bid with Alan Bowkett, McCarthy & Stone’s former chairman.
McCarthy & Stone is Britain’s largest developer of privately owned property for older people. Over the last three decades, it has built 45,000 apartments nationwide.
After Mark Elliott, the former boss of Arena Leisure took over as chief executive at McCarthy & Stone last November, he brought in bankers from Moelis & Co to advise on the company’s debt.
They are thought to be looking at a range of options for the business.
Plans for a potential bid are in their very early stages, but it is thought that injecting further capital into McCarthy & Stone could help boost construction.
Although CVC shares control of Acromas, owner of over 50s group, Saga, it is thought that any potential bid for McCarthy & Stone is entirely unrelated to Acromas with a source close to the situation saying: “There is no link to Acromas”.
A bid for McCarthy & Stone would highlight rebounding confidence in the housbuilding sector, with Crest Nicholson announcing earlier this year that it is planning a return to the stock market.
CVC and McCarthy & Stone declined to comment.