Locust Point Capital wraps up inaugural private credit fund at $312 mln

Locust Point Capital has closed its debut private credit fund at $312 million, beating its initial $250 million target. The limited partners of Locust Point Private Credit Fund include pension funds, endowments, foundations, insurance companies and wealth advisers. The fund will provide subordinate debt, preferred equity and opportunistic senior mortgage loans to owner/operators in the seniors housing and care sector. Avec Capital/XT Capital Partners was the placement adviser while Morgan Lewis served as fund counsel.

PRESS RELEASE

RED BANK, N.J., Sept. 12, 2018 /PRNewswire/ — Locust Point Capital announced today the closing of its debut fund, Locust Point Private Credit Fund, L.P. (the “Fund”). The Fund had an initial target of $250 million; after receiving strong interest from a diverse group of investors, including pension funds, endowments, foundations, insurance companies and wealth advisors, the Fund was closed oversubscribed at $312 million. Approximately two-thirds of the commitments came from US investors, with the remaining one-third coming from European investors.

Through the Fund, Locust Point Capital provides subordinate debt, preferred equity, and opportunistic senior mortgage loans to owner-operators in the seniors housing and care sector. The owner-operators use the Fund’s capital to acquire, build, expand or renovate assisted living, memory care, and skilled nursing facilities throughout the United States. This strategy provides owner-operators with a short-term, non-dilutive, and flexible financing solution. The management team of Locust Point Capital has 65+ years of combined experience investing in this space and have already invested $93.8 million of the Fund’s committed capital.

“We are excited to close our Fund at $312 million and to be partnering with investors who recognize and appreciate the strength of our strategy. We will continue to leverage our strategic networks to originate attractive investment opportunities for the Fund,” said Eric Smith, one of the Founding Partners. “Given the US seniors housing and care market is estimated to grow to $550 billion by 2024, we believe there is a substantial untapped market opportunity for our investment strategy. The Locust Point Capital team’s operational knowledge and experience in providing various types of debt and preferred equity investments to owner-operators of seniors housing and care facilities gives us an advantage in identifying and structuring real estate backed value-add transactions.”

Locust Point Private Credit Fund, L.P. is managed by Locust Point Capital, Inc, an SEC-Registered Investment Advisor. Avec Capital/XT Capital Partners acted as global placement advisor, and Morgan Lewis served as Fund counsel.

About Locust Point Capital
Locust Point Capital is an alternative asset manager firm headquartered in Red Bank, New Jersey, with an office in Washington D.C. Led by a management team with deep experience in investing in the seniors housing and care sector, the firm provides tailored capital solutions to owner-operators that need short-term, non-dilutive capital in order to execute their business plans. Locust Point Capital offers subordinate debt, preferred equity, and opportunistic senior mortgage loans, for acquisitions, refinancing, recapitalizations, new construction, capital investment, or working capital. Additional information about Locust Point Capital is available at www.locustpointcapital.com.