Senior living funds refer to investment vehicles targeting the senior housing and care industry. When considering investing in such funds, an important factor is the minimum investment amount required. This can vary greatly depending on the fund’s strategy, size, investor profile, etc. Typically, minimum investments range from $25,000 for retail investors in small funds to over $1 million for institutions investing in large private equity style funds.
Minimum investments correlate with fund size and strategy
Larger funds focused on development or acquisitions may require minimum investments of $1-5 million, restricting investor access to institutions or ultra high net worth individuals. Smaller funds focused on operations may have lower minimums from $250,000 down to $25,000 to allow participation from more retail investors.
Lock-up periods restrict liquidity
Minimum hold periods of 5-10 years are common in senior housing funds in order to realize longer-term returns from property appreciation and rental income.
Co-investments enable lower minimums
Some managers may offer co-investments in specific assets alongside an existing fund, which can reduce minimums to the $100,000-$250,000 range.
In summary, senior living funds can have wide ranging minimum investments based on their strategy and target investor type, with factors like fund size, lock-up period, and co-investment options all playing a role.