INVESTMENTS IN REAL ESTATE

The Carlyle Group invested in the active adult community segment by partnering with Greystar to expand its Overture active adult facility brand. Meanwhile, LongueVue Capital provided growth capital financing to the Platinum Senior Living facility. With regard to investments made in the ambulatory medical office space, KKR invested $10 billion dollars to acquire an operator of ambulatory medical facilities.

1. Active Adult Communities

The Carlyle Group

• The Carlyle Group is a private equity firm that invested in the active adult community sector. One of its investments is on the Overture brand of the Greystar property business.
• The Overture brand operates several active adult communities.
• The company has chosen this sector due to the longer stays made by the residents compared to the average in independent living homes. The company also earns at profit margins that are greater than those that can be gained from investing in senior housing.
• The company analyzed demographic patterns prior to its first investment in the active adult sector.
• Its current active housing portfolio has a series of acquisitions and ground-up projects.

The Arizona State Retirement System (ASRS)

• The Arizona State Retirement System (ASRS) invested in LGI Homes, Inc. by purchasing 4,865 shares with a total value of $614,000.
• LGI Homes provides active adult facilities for people who are 55 years old and above.  
• The ASRS is a pension fund that invests in various assets to provide earning for its beneficiaries.

The New York State Common Retirement Fund

•  Meritage Homes provides a facility for 55+ active adult communities.
• The New York State Common Retirement Fund invested in Meritage Homes by purchasing 358,000 of the latter’s stocks worth $27 million.
• The New York State Common Retirement Fund is a pension fund that invests in private equity, real assets, and other types of investments.

Senior Housing

• HJ Sims provided a $154.3 million funding bundle for Legacy Midtown Park.
• The Legacy Midtown Park is a non-profit and start-up CCRC establishment in Dallas, Texas.
• The property will be overseen by Legacy Senior Communities.  
• The financing deal includes a “$69.9 million bond underwriting, $70.5 million financing, and a $14 million in subordinate financing.”
• The property will have 325 total units that will house ” independent and assisted living, and memory support residences, and a health care center with nursing beds.”
•  HJ Sims is a private equity and financial firm that offers wealth management and insurance services.

2. Senior Housing Communities

FOcus Healthcare Partners

• Focus Healthcare Partners allotted $312 million worth of private equity funding for senior housing facilities.
• The private investment firm targets to invest a cumulative amount of $900 million in various senior living properties across the U.S.

LongueVue Capital

•  LongueVue Capital is a private equity firm that is focused on investing in various industries such as healthcare, transportation, logistics, specialty manufacturing, and others.
• The company invested in Platinum Senior Living by providing growth capital to finance the establishment of new senior living properties.
•  Platinum Senior Living operates a premium senior care facility that is engaged in providing assisted living and memory care services.

Kayne Anderson Capital Advisors

•  Kayne Anderson Capital Advisors has hit its initial goal of providing $1.2 billion to the U.S. senior housing sector. The company is now aiming to reach its new target of $1.8 billion.
• Once the fund is completed, 90% of the amount will be invested in senior housing properties and medical office facilities.
• The firm is mostly focused on independent and assisted living facilities.
• One of the senior living facilities that the firm invested in is a collaboration with the Watermark Retirement Communities group to convert a historic 16-story property in New York into senior living.
•  Kayne is a private equity firm.

The following shows a summary of the various investments done on senior housing and care facilities:

3. Ambulatory Medical Offices

KKR

• KKR’s investment in ambulatory medical facilities includes its $10 billion acquisition of Envision Healthcare.
•  KKR is a private equity firm.
• Envision Healthcare provides various healthcare delivery services in various its ambulatory surgery facilities.

ZT Corporate

•  ZT Corporate is a private equity firm that focuses on investing in the healthcare and automotive industry.
• The company partnered with the Physicians Surgical Network Affiliates (PSN Affiliates) to invest in the “development and acquisition” of acute-care medical establishments.
• The collaboration will integrate PSN Affiliate’s ambulatory surgery facilities network with ZT Corporate’s Altus Health.
• Altus Health is a healthcare portfolio firm that includes a “network of specialized physicians, hospitals, emergency rooms, and other acute-care facilities.”

LLR Partner

•  LLR Partner, a private equity firm, invested in Eye Health America.
• Eye Health America is a newly-established “practice management organization” that aims to help major eye care practices expand further through both “organic growth and acquisition initiatives.”
• The establishment of Eye Health America also comes with its acquisition of The Eye Associates, Clemson Eye, and the Piedmont Surgery Center.
• These three firms are the major players when it comes to offering “advanced eye care and ambulatory surgery services.”

4. Life Science R&D Facilities

GTCR

•  GTCR, a private equity firm, partnered with life sciences executive Carl Hull on a management level to establish Maravai Life Sciences.
• Through this partnership, the company was able to invest in the acquisition of several life sciences companies such as Glen Research, an oligonucleotide critical inputs provider.
• By combining the life sciences assets that were acquired, the company was able to establish a “scalable commercial infrastructure.“

Bain Capital

•  Bain Capital, a private equity firm, will set aside $720 million to help the life sciences sector expand its operations further.
•  Investors are now paying attention to life science properties as they now realize that assets in this sector are valuable.

The Biogen-Idec Innovation Incubator

• The Biogen-Idec Innovation Incubator aims to invest in the research and discovery of new therapeutic drugs by offering facilities, work areas, funding, and business support to scientific entrepreneurs.
• The company already collaborated with several businesses and academic institutions.  
• The company plans to invest millions of dollars in new discoveries.  
• In exchange for the investments, the company will own the rights to the final product.  

J&J’s JLABS

• J&J is working on establishing JLABS, an incubator network that can help the company have first-hand access to initial product discoveries.
• The company invests in the life sciences sector by offering its shared facilities such as workspaces and laboratories with “chemistry, biotechnology, and prototyping equipment.” The facilities can be used by businesses and scientists.