Are Private Equity Firms the Next Big Investor in Senior Housing?

Most will agree that 2011 was the year of the REITs, with healthcare real estate investment trusts going on a $20 billion spending spree, writes the National Real Estate Investor, but in 2012, private equity firms could be the “next big investors in seniors housing.”

“Private equity will be active this coming year in seniors housing,” the article quotes Noah Levy, managing director at Prudential Real Estate Investors, as predicting. Prudential is an “established private equity” investor in the seniors housing market, according to NREI, and other funds are either gearing up to make acquisitions, or are being formed to make an investment into seniors housing.

Although it would be tough to reach the REITs’ 2011 level of activity, according to Levy, private equity groups are looking for places to put their money, and investors have remained “bullish” on seniors housing during the downturn, the article reports.


NREI goes on to list some equity funds that have recently been created, including one by Grosvenor Investment Management U.S., Inc., Kuwait Finance House, and The Carlyle Group, and names some problems and opportunities related to private equity investing in seniors housing.

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Written by Alyssa Gerace