Duke Street Capital has sold Paragon Healthcare to private equity firm Hg Capital for £322m. Paragon has over 250 care homes across the UK with approximately 1,300 residents. In a company press release, Hg said it had “a deep understanding of the specialist care sector, which has strong long-term growth prospects”. In 2002, it purchased Castlebeck Care Holdings Ltd from the 3i Group. Hg has also stated that it will invest approx. £12.2 million in Paragon Healthcare.