175 Southeast Nursing Homes
Acquired below market, reorganized and restored to profitability, then resold at double the purchase price.

A perfect example of investing "against the grain" occurred when large numbers of Florida nursing homes, under the financial pressure of an overheated insurance liability environment in 2001 and 2002, became available at depressed values. Through its separate affiliated company, Senior Care Holdings LLC, SCH joined with and invested in Formation Capital LLC-sponsored projects and, over the next few years, acquired more than 175 nursing homes with over 21,500 beds in 19 states. Industry insiders were quick to scoff, but not for long. By separating ownership of the real estate from the operating company, the investment group was able to contain patient liability and restore profitability—creating nothing less than a paradigm shift in the nursing home industry. Subsequently, the revalued portfolio was sold to GE Capital in 2006 for approximately $1.4 billion, more than twice the original purchase price.

<< Back to Investments...