A collaboration between specialty investment bank Ziegler and venture capital firm LinkAge Ventures aims to drive innovation within the non-profit senior living sector through the creation of a new fund focused exclusively on the aging marketplace.
Founded on the belief that the nation’s increasing aging population presents an attractive investment opportunity, especially given its growth and complexity of healthcare needs, the Ziegler LinkAge Longevity Fund, L.P., will invest in companies who have established solutions and are seeking additional growth capital.
The Fund will target equity investments in companies that provide healthcare services relevant to the senior living and aging population marketplace, including but not limited to those specializing in aging in place, care coordination, chronic disease management, wellness strategies, hospital readmission reduction and government funded programs.
Additionally, the Fund also intends to provide a platform for collaboration and innovation amongst limited partner investors, who are comprised primarily of approximately 70 not-for-profit senior living providers from across the nation.
This collaborative “idea sharing” between various companies, senior living providers and other healthcare constituents will be beneficial to the entire sector, said Dan Hermann, head of investment banking at Ziegler.
“We want to build on the not-for-profit providers’ historical approach to shared learning experiences and provide a forum to cultivate new solutions relevant to their organizations,” Hermann stated in a release.
That platform for collaboration is strengthened by LinkAge, a firm that invests in both traditional venture capital opportunities and more established companies that can leverage the company’s network of 600 senior living communities.
“This is a great forum for the type of innovative thinking and collaboration that our members are looking for,” stated LinkAge CEO Scott Collins. “We believe that the Fund will be a great help in developing new products, services and technologies for the senior living space.”
So far, the Fund has amassed total capital commitments of $26.2 million as it plans to capitalize on the Longevity Economy driven by the nation’s immense aging population.
The Ziegler LinkAge Fund joins other initiatives taken on by senior living investors striving to bring more innovation to the industry.
In May, Formation Capital, a $4 billion private equity powerhouse focused on senior living and healthcare real estate, announced its partnership with tech startup accelerator Aging2.0 to form Generator Ventures, an early-stage fund for startup companies specializing in the aging and long-term care space.
Similarly, Georgia Tech University , InnovateLTC and Institute for the Ages embarked on a three-way partnership to pool their resources together to accelerate innovations for the senior care space. By joining forces, the organizations not only plan to develop new technologies tailored specifically for senior care, but also to connect emerging companies with investors, researchers and consumer test tracks.
Though the Ziegler-LinkAge collaboration expands its focus to various fields and not solely technology, the demand for new solutions to meet the needs of a growing aging demographic is compelling, said Collins.
“…[W]e also believe that providing our investors with a platform to evaluate new products and services, while collaborating with other respected peers from around the country is incredibly valuable,” Collins stated.
Written by Jason Oliva