IRA Capital, a private equity firm based in Southern California, has recently announced the launch of the IRA Healthcare Real Estate Fund. The closed-end fund, with a total capitalization of $500m, will focus on acquiring medical properties and senior housing assets across the United States.

With an impressive track record in healthcare real estate, IRA has achieved an average annualized return of 48% and a net equity multiple of 1.7x for its investors. Over the past 13 years, IRA has established itself as one of the most active healthcare real estate investors in the country. The firm has successfully executed numerous investments, selling portfolios to large institutions and public REITs. Examples include a 19-property portfolio sold to Welltower REIT for around $300m in January 2020 and a 29-property portfolio sold to Nuveen Real Estate for approximately $620m in August 2021.

Having built strong relationships with health systems and medical providers, IRA has gained a reputation as a reputable privately held healthcare real estate platform. These extensive relationships have enabled the firm to source attractive opportunities and aggregate best-in-class assets.

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The IRA Healthcare Real Estate Fund will primarily focus on acquiring, developing, and financing healthcare assets in markets with high barriers to entry and limited supply. The fund will be open to domestic and foreign endowments, pension funds, insurance companies, family offices, fund of funds, registered investment advisors, and other qualified high-net-worth investors. Investors will have the opportunity to diversify their capital across various healthcare assets and geographic markets, with projected annualized net returns of 14% to 16% and a net equity multiple of 1.7x to 1.9x.

The fund’s strategy will encompass assets across the risk spectrum, with an emphasis on core-plus and value-add opportunities. This diverse strategy aims to create a balanced portfolio that combines yield and appreciation while providing downside protection due to the needs-based demand in the healthcare sector. Additionally, the current capital markets environment presents unique re-positioning opportunities that IRA expects will generate substantial value and outsized returns.

Sidley Austin LLP served as the legal counsel in the formation of the IRA Healthcare Real Estate Fund. IRA Capital, founded in 2010, is a private equity firm headquartered in Irvine, California. It invests capital for its own account and on behalf of co-investment partners, including pension funds, institutions, and family offices. With a portfolio spanning over seven million square feet of property across 30 states, IRA has achieved a total capitalization of more than $3 billion. For more information, visit www.IRAcapital.com.

Source: Gillet News

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