Locust Point Capital is a leading private credit manager dedicated exclusively to America’s seniors housing and care sector. Since inception, the firm has focused on bridging the capital gap between institutional investors and the communities caring for an aging population. With $1.6B in regulatory assets under management across four investment vehicles, Locust Point provides financing solutions that strengthen one of the nation’s most vital social infrastructures.

The firm specializes in the lower middle market, typically transactions below $50M, where traditional lenders often lack the flexibility to meet operator needs. Locust Point delivers customized credit strategies, including unitranche and bridge-to-agency loans, preferred equity, and recapitalizations, designed to unlock long-term value for both borrowers and investors.

Headquartered in Miami, Florida, Locust Point Capital is led by a senior team with nearly three decades of experience lending and investing in seniors housing and care. The firm’s investment professionals bring expertise in healthcare operations, real estate, and structured credit, applying a disciplined yet innovative approach to underwriting, structuring, and asset management.

Beyond capital, Locust Point serves as a strategic partner to operators across the United States, supporting communities that collectively serve more than 36,000 seniors. Guided by a commitment to partnership, performance, and purpose, Locust Point Capital continues to advance the stability and growth of a sector essential to America’s future.

Strategic corporate development

Locust Point Capital provides institutional investors with access to the lower middle market of the U.S. seniors housing and care sector—a segment that remains largely inaccessible through traditional investment channels. As a sector-focused investment manager, the firm combines deep domain expertise with a disciplined, data-driven approach to credit and equity investing.

While exclusively focused on seniors housing, Locust Point Capital constructs highly diversified portfolios across geography, operator, facility type, and position in the capital structure. Investors can select from a range of fund strategies, including senior mortgage debt, subordinate debt, and preferred equity, offered in both closed-end and open-end formats.

Looking ahead, Locust Point Capital will continue to expand its platform to meet the evolving needs of institutional investors by delivering tailored, income-oriented investment solutions that align with long-term demographic trends and capitalize on attractive opportunities within a growing and resilient sector.

Sector forecasts (as of June 2025)

U.S. SENIORS HOUSING MARKET OUTLOOK: STRUCTURAL GROWTH, COMPELLING RETURNS

The U.S. seniors housing sector is entering a powerful new phase of growth. Anchored by long-term demographic tailwinds, improving fundamentals, and constrained new supply, the sector offers institutional investors a rare opportunity to capture durable income and total-return potential. Unlike most real estate asset classes, in our experience seniors housing has proven largely recession resilient, driven by needs-based demand that is shaped by aging demographics rather than market cycles.

STRUCTURAL DEMAND SURGE:

The leading edge of the Baby Boomer generation will reach age 80 in 2025, marking the start of an unprecedented wave of demand. The 80+ population, currently about 15 million, is expected to more than double to 31 million by 2060. As longevity increases and caregiver ratios decline by nearly half, demand for independent living, assisted living, and higher-acuity options will intensify. Approximately 70% of Americans over 65 will require some form of long-term care during their lifetime, driving sustained absorption of senior housing units well beyond the capacity of the current supply pipeline.

SUPPLY CONSTRAINED:

After several years of disruption from COVIDrelated challenges and rising construction costs, development has slowed sharply. Annual deliveries have averaged only 11,000–14,000 units over the past two years, far below the estimated 60,000 units required annually to meet demand through 2050. This limited pipeline, combined with a rebound in occupancy above pre-pandemic levels, positions the sector for a period of prolonged rent growth and NOI expansion. In many major markets, occupancy has already surpassed 2019 levels, with nationwide averages projected to tighten further as the demographic wave builds.

IMPROVING ECONOMICS:

Affordability remains robust: the median U.S. household headed by someone 75 or older now holds net wealth exceeding $360,000, up more than 100% over the past decade. Seniors’ home equity and investment portfolios have grown faster than senior housing costs, providing a wider affordability cushion for private-pay housing. Meanwhile, expense pressures are easing as labor markets stabilize and wage growth moderates, supporting a full earnings recovery.

ATTRACTIVE ENTRY POINT:

Cap rates for seniors housing assets have risen to roughly 6.8%, the highest in over a decade and more than 150 basis points above traditional multifamily yields. This pricing disconnect creates an exceptional arbitrage opportunity: we believe investors can acquire high-quality assets at historically wide spreads relative to both apartments and U.S. Treasuries, with the prospect of possible cap-rate compression as liquidity returns to the market.

OUTLOOK:

With resilient demand, constrained supply, and favorable pricing, we believe the seniors housing sector stands poised to outperform other property types over the next decade. For institutional investors seeking inflation-protected income and exposure to long-duration demographic growth, the sector offers a rare combination of stability, scalability, and long-term value creation.

Investment principles & strategy

Locust Point Capital’s investment philosophy is grounded in disciplined underwriting, capital preservation, and consistent risk-adjusted returns. The firm provides tailored private credit solutions to experienced owner-operators in the U.S. seniors housing and care sector, a market defined by durable demographic demand, resilient income streams, and limited correlation to broader real estate or credit cycles.

Locust Point Capital focuses on senior secured, subordinated debt, and preferred equity investments across stabilized, value-add, and development opportunities. Its relationship-driven sourcing model, built over decades of engagement with high-quality operators, lenders, and intermediaries, is well-positioned to deliver a steady pipeline of proprietary opportunities. Each investment is supported by rigorous underwriting, comprehensive due diligence, and stress-tested financial analysis designed to ensure structural integrity and downside protection.

The firm’s investment process is reinforced by a collaborative governance framework that emphasizes transparency, accountability, and risk management at every stage. Post-investment, portfolio assets are actively monitored through detailed financial reporting, performance analytics, and hands-on engagement with operators.

By combining sector specialization, disciplined credit selection, and proactive asset management, Locust Point Capital seeks to generate stable current income, preserve principal, and deliver long-term value creation for institutional investors across economic cycles.

Performance verification

Locust Point Capital measures its investment performance against relevant benchmarks in line with institutional best practices. Independent third parties review and verify performance data on a regular basis, with a view towards ensuring transparency, accuracy, and accountability across all managed funds.

COMPLIANCE STATEMENT

All data is as of June 30, 2025. These materials are confidential and intended solely for the designated recipient. Distribution is permitted only to persons who may lawfully receive them. The information is provided on a non-reliance basis and does not constitute legal, tax, or investment advice, nor an offer or solicitation to buy or sell any security. Although data is derived from sources believed reliable, no representation or warranty is made as to its accuracy or completeness. Opinions expressed reflect conditions as of the stated date and are subject to change without notice. Recipients are responsible for ensuring compliance with all applicable laws and regulations when sharing or relying upon this material.