HMC Raises $510 Million For Senior Housing Fund

Alternative asset management firm Harbert Management Corporation (HMC) has announced the final close of a fund that secured approximately $510 million worth of equity commitments to target the U.S. senior housing industry.

HMC’s Harbert Seniors Housing Fund II has to date closed eight transactions, three of which were joint venture development projects. The investments ultimately amounted to nine senior housing properties that vary in location, type and management; and included institutional and private investors from the U.S. and abroad.

The fund’s portfolio includes communities such as Balfour at Creekside, a 100-unit assisted living and memory care development managed by Balfour Senior Living in Longmont, Colorado; and Cedarhurst of Columbia, a 95-unit Cedarhurst Senior Living community in Columbia, Missouri.

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Looking ahead, the Birmingham, Alabama-based firm’s investment team will continue to look for opportunities that can garner reliable sources of revenue and the potential for yield enhancement, according to a press release issued Tuesday. The firm did not immediately respond to requests for further comment from Senior Housing News.

“Having successfully raised our second pool of discretionary capital puts us in an excellent position to continue to build a high quality portfolio of seniors housing properties through our operating partner relationships,” stated the fund’s co-manager, Trent Johnson.

As of March 31, HMC managed approximately $7.4 billion of assets in total. The firm’s Harbert Seniors Housing Fund I totals $209 million, and is committed across 30 properties managed by nine operators, including JEA Senior Living and MorningStar Senior Living.

HMC is not the only group targeting senior housing, even in the midst of Covid-19. McFarlin Group recently announced it is launching a $100 million fund to target distress opportunities, for instance.

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