Locust Point Capital Closes $428M Seniors Housing Debt Fund

by Jeff Shaw

RED BANK, N.J. — Locust Point Capital has closed Locust Point Seniors Housing Debt Fund II, the firm’s second fund focused on its direct lending strategy to the seniors housing and care sector.

The Red Bank-based firm launched its $312 million debut fund in 2016. Fund II closed above its target at $428 million after receiving strong interest from a diverse group of investors, including pension funds, endowments, foundations, insurance companies and wealth advisors.

Approximately three quarters of the commitments came from United States-based investors, with the remaining coming from European investors.

Fund II’s strategy is to provide subordinate debt, preferred equity and opportunistic senior mortgage loans to owner-operators of seniors housing and care facilities in the United States. The owner-operators use Fund II’s capital to acquire, build, expand or renovate independent living, assisted living, memory care and skilled nursing facilities throughout the United States. This strategy provides owner-operators with a short-term, non-dilutive and flexible financing solution.

Since inception in 2016, the total value of financed transactions in which Locust Point has participated exceeds $2.25 billion.

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