Birchwood Healthcare Partners is setting itself up to capitalize on the coming distress in the seniors housing and care industry with the closing of initial fundraising for its 5V+ Seniors Healthcare Fund. The fund will provide investors with exposure to four key sectors: seniors housing, healthcare services (like rehabilitation, hospice, home health, therapy and behavioral health), transitional/long-term care and active adult.
Citing the appeal of demographics, Birchwood also noted the “unparalleled opportunity in the fragmented and misaligned seniors healthcare industry in today’s market.” In its announcement, the firm also pointed out that with over $272 billion in government financial assistance programs winding down post-pandemic and capital providers wanting to prioritize quality assets amid significant financial and operational headwinds, “distressed assets will emerge.”
Attractive pricing from a buyer’s perspective also means that Birchwood will look to capitalize on the opportunity and generate strong investor returns. Birchwood, which launched in 2014 as a fully-integrated and diversified investment firm, is already reporting significant progress in its investment pipeline, with hopefully a few closings to report soon. For fund size, Birchwood was targeting up to $100 million in equity assets under management, with an estimated net IRR between 14% and 16%. The fund term is expected to be eight years from final closing with two one-year extensions.
