Fresh off closing its $3.7 billion opportunistic real estate fund this March, TPG may have to wait a bit to make its next big acquisition in the senior living space, as its rumored offers to acquire the struggling Capital Senior Living Corporation have all apparently been rebuffed by the company, according to Bloomberg. The approaches were supposedly made in the past few months. The news, however, caused the CSU share price to jump as much as 24% to $4.47. Considering the company’s four-year trend, falling from a peak of $27.50 in April 2015 to below $4.00 per share in May, there is still a long way to go. But at its current value, a buy-out has to be looking more and more attractive. And given the market reaction, some shareholders may agree.
In 2013, TPG took the beleaguered Assisted Living Concepts private for $278 million. At the time, ALC operated 210 senior living communities in 20 states. Since then, TPG renamed the company Enlivant and sold a 49% interest in the portfolio to Sabra Health Care REIT. Operations also improved significantly across the portfolio since the 2013 acquisition. So, TPG is no stranger to large turnaround portfolio acquisitions in senior living.
