Senior living credit investment firm Locust Point Capital has closed on a new fund with $668 million in capital commitments.
The company’s fund, called Locust Point Private Credit Fund III, represents a 56% increase following the Miami, Florida-based firm’s $428 million fund vehicle in 2020. The firm is using the fund to support “existing limited partners, as well as participation from a select group of new institutional investors,” according to a news release.
The fund will provide credit to “experienced owner-operators” of senior living communities across the country.
Locust Point Capital CEO Eric Smith said broader “macroeconomic tailwinds and accelerating demographic-driven demand” for senior living puts the latest funding vehicle on track to be “one of our strongest performers to date.”
The organization will target “sub-$50 million transactions,” what Locust Point calls a “highly fragmented and undercapitalized segment” of the senior living transaction market, with prospective transactions centered on “income generation and principal protection.”
In conjunction with the close of the Fund III, Locust Point Co-Founder and Executive Managing Director Dan Contardi has been promoted to the role of president.
“With Fund III, we are reaffirming our commitment to the industry and strategy that has consistently delivered results for our investors and borrowers,” Contardi said in the news release. “We remain committed to backing high-conviction operators, maintaining strong underwriting standards, and delivering attractive risk-adjusted returns to our investors.”
Since 2015, Locust Point has raised over $1.6 billion in capital commitments.
