Lee Equity Partners, Coastwood Senior Housing Partners Invest in Discovery Senior Living

by Jeff Shaw

BONITA SPRINGS, Fla. — Funds advised by Lee Equity Partners LLC and Coastwood Senior Housing Partners LLC have agreed to an undisclosed amount of investment in Discovery Senior Living, a Bonita Springs-baed operator.

The recapitalization will fund Discovery’s expansion and operational platform enhancement plans.

“This strategic recapitalization purposefully combines the strengths and successful experiences of three companies and the resultant innovation-focused efforts will allow the acceleration of Discovery’s ability to execute its vision of creating a scaled company that outperforms the marketplace, addresses some of the legacy industry paradigms and of course focuses on delivering a customized and holistic resident and team member experience,” says Richard Hutchinson, CEO of Discovery Senior Living.

“The secular growth tailwinds and consolidation opportunity within seniors housing management are very similar to those we observed in the third-party hotel management sector with our Aimbridge Hospitality investment,” says Yoo Jin Kim, partner, Lee Equity Partners. “We seek to replicate that success in partnership with Richard Hutchinson and the Discovery team, as well as Dan Decker and the Coastwood team.”

“We believe the partnership among Discovery, Coastwood and Lee Equity will be unique in the senior living industry,” says Dan Decker, chairman, Coastwood Senior Housing Partners. “Discovery contributes its highly scalable platform and best-in-class senior living operations. Coastwood contributes decades of senior living investment and operating experience. Lee Equity contributes its expertise in business and healthcare services along with its buy-and-build experience.

Decker will assume the role of chairman of the board of directors of Discovery Senior Living upon closing.

The family of companies in the agreement include Discovery Management Group, Morada Senior Living, TerraBella Senior Living, Discovery Development Group, Discovery Design Concepts, Discovery Marketing Group and Discovery At Home, a Medicare-certified home healthcare company.

The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close in fourth-quarter 2022.

Discovery Senior Living currently owns and operates a national, multi-branded portfolio of more than 110 communities in 19 states.

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