Great Elm Capital Corp. and an affiliate of Berkadia Commercial Mortgage will form Great Elm Healthcare Finance in a joint venture to provide venture capital to companies focused on skilled nursing facilities and senior living communities as well as acute care facilities and specialty pharmacies, the companies announced.

Berkadia, according to GECC, will be a strategic minority partner in the joint venture. 

Headquartered in Nashville, TN, GEHF will be led by Michael Gervais as CEO, Ray Zilke as vice president of portfolio and Chad Kerr as vice president of credit, along with a management team with “substantial” expertise in healthcare real estate. GEHF also will be supported by Great Elm Specialty Finance’s existing infrastructure.

GEHF will provide working capital, refinancing, acquisition and recapitalization to healthcare companies as well as provide asset-based revolving loans, mortgage financing, secured debt and capital for healthcare companies in transition.

Gervais previously founded Gemino Healthcare, which was sold to Solar Senior Capital in 2013, and he was a senior member of Healthcare Business Credit Corp., which was sold to CIT Group in 2005.

Prior to joining GEHF, Zilke co-founded the Crestmark Healthcare Financial Services Group and served as portfolio manager for the Transportation Lending Group.

Kerr previously spent more than 17 years at Crestmark, where he co-founded its healthcare financial services group.

“We are thrilled to partner with GECC on this venture. Berkadia is constantly developing solutions for our clients and this partnership expands the suite of products to assist our clients in the seniors housing and healthcare sectors,” Steve Ervin, senior vice president and head of Berkadia’s FHA and seniors housing finance group, said in a statement. 

Michael Keller, president of GECC’s specialty finance business, said that GECC has had a long-standing relationship with Berkadia’s senior management, having worked with them on numerous opportunities over the years.

The time is right to launch the venture capital company, he added, “as we are seeing a significant number of healthcare investment opportunities.”