By Andrew Christman | June 20, 2024
Focus Healthcare Partners (FHP) has closed a $370 million fund that will be used to target investments in the private-pay senior housing sector.
The fund, Focus Senior Housing Fund II LP, is noted to be 20% larger than the real estate investment and asset firm’s last senior housing fund, according to a press release issued Thursday.
FHP will evaluate investments across active adult, independent living, assisted living and memory care, with potential transactions “across the risk spectrum” of core-plus, value-add, and distressed opportunities, the release states.
While FHP primarily focuses on acquisitions, the firm will use the fund to assess development, distressed debt and preferred equity opportunities.
“We are thrilled with the continued commitment from our long-term investors, and we welcome the new investors who have trusted us to continue our track record of providing excellent, risk-adjusted returns,” Curt Schaller, FHP principal and co-founder said in the release.
Mike Feinstein, managing director with FHP, noted there should be ample opportunities for investors due to the amount of growth in the number of adults coming into senior housing and the limited amount of new supply in the near-term.
Incubation Capital Partners LLC served as the exclusive advisor for the fundraise.
Focus Healthcare Partners is based in Chicago and has acquired about $1.2 billion in senior housing real estate assets since 2010. The management team has worked together for more than 15 years, going back to organizations preceding Focus. The firm’s track record is one reason why the latest fundraising effort was successful even in a challenging market, Principal and Co-Founder Paul Froning stated.
Investors in the fund include university endowments, state and corporate pension funds, insurance companies, wealth managers, family offices, and other institutional investors, according to the release.
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