Red Bank, NJ-based Locust Point Capital has closed its debut fund in seniors housing and care, the Locust Point Private Credit Fund, oversubscribed at $312 million, the asset management firm announced Wednesday.
The company’s management team already has invested $93.8 million of the fund’s committed capital, Locust Point Capital said.
Through the fund, the company provides subordinate debt, preferred equity and senior mortgage loans to owners and operators of assisted living, memory care and skilled nursing facilities for acquisitions, construction and expansion or renovation projects.
“Given the U.S. seniors housing and care market is estimated to grow to $550 billion by 2024, we believe there is a substantial untapped market opportunity for our investment strategy,” Eric Smith, one of the founding partners, said in a statement.
The fund had an initial target of $250 million. Investors are pension funds, endowments, foundations, insurance companies and wealth advisers, Locust Point said. Two-thirds of the commitments came from investors in the United States, with the balance coming from European investors.
