Senior residing credit score funding agency Locust Level Capital has closed on a brand new fund with $668 million in capital commitments.
The corporate’s fund, known as Locust Level Non-public Credit score Fund III, represents a 56% enhance following the Miami, Florida-based agency’s $428 million fund automobile in 2020. The agency is utilizing the fund to assist “present restricted companions, in addition to participation from a choose group of latest institutional traders,” in keeping with a information launch.
The fund will present credit score to “skilled owner-operators” of senior residing communities throughout the nation.
Locust Level Capital CEO Eric Smith mentioned broader “macroeconomic tailwinds and accelerating demographic-driven demand” for senior residing places the most recent funding automobile on observe to be “considered one of our strongest performers up to now.”
The group will goal “sub-$50 million transactions,” what Locust Level calls a “extremely fragmented and undercapitalized phase” of the senior residing transaction market, with potential transactions centered on “revenue technology and principal safety.”
Together with the shut of the Fund III, Locust Level Co-Founder and Govt Managing Director Dan Contardi has been promoted to the position of president.
“With Fund III, we’re reaffirming our dedication to the business and technique that has constantly delivered outcomes for our traders and debtors,” Contardi mentioned within the information launch. “We stay dedicated to backing high-conviction operators, sustaining robust underwriting requirements, and delivering engaging risk-adjusted returns to our traders.”
Since 2015, Locust Level has raised over $1.6 billion in capital commitments.
