Private equity raises $668 million for senior housing credit fund
LOS ANGELES: A new entrant has now entered the seniors housing and assisted living care sectors.
Locust Point Capital has closed Private Credit Fund III with $668 million in total capital commitments, the Red Bank, NJ, and Miami-based investment firm announced Monday. The company focuses exclusively on the senior living and care sector.
Locust Point targets transactions of less than $50 million and, according to the company, has not experienced a principal loss since its founding in 2015. In that time, the firm has raised more than $1.6 billion in capital commitments across its investment vehicles.
“Having invested in the seniors housing industry for more than three decades, I believe the combination of favorable macroeconomic tailwinds and accelerating demographic-driven demand positions Fund III to be one of our strongest performers to date,” Locus Capital co-founder and CEO Eric Smith said in a company press release.
Private Credit Fund III marks a 56% increase over the firm’s $428 million Private Credit Fund II in 2021. Private Credit Fund I raised $312 million in 2018.
“Fund III will continue to execute the firm’s core strategy, providing structured credit solutions to experienced owner-operators of seniors housing communities across the United States,” Locust Point said.
The company said that generating income and protecting principal remain central to its approach as it continues to invest in its technology and operating infrastructure.
Along with the investment fund closing, Locust Point announced the promotion of Dan Contardi to president. He is the company’s co-founder and former executive managing director.
“With Fund III, we are reaffirming our commitment to the industry and strategy that has consistently delivered results for our investors and borrowers,” Contardi said. “We remain committed to backing high-conviction operators, maintaining strong underwriting standards, and delivering attractive risk-adjusted returns to our investors.”