Today marks the launch of Texas-based Legacy Hospital Partners, which aims to build up a portfolio of hospital assets.
Buyout firm CCMP Capital Advisors is behind the company in conjunction with the Canada Pension Plan Investment Board as well as senior management of the private company.
Legacy will invest in acute care hospitals in small cities and some urban markets in the US. Its strategy is to acquire assets together with not-for-profit hospital companies.
CCMP, the former in-house private equity arm of JPMorgan, called JPMorgan Partners, has established a track record investing in the healthcare sector with investments including CareMore Medical Enterprises and National Surgical Care. However, there are plenty of real estate investors also active in the sector.
Legacy will be led by chairman James Shelton and chief executive officer Dan Moen, respectively the former chairman and CEO and the former executive vice president of Triad Hospitals.
US investors say the ageing population is the reason why assets in the healthcare sector are in demand.
Recently, LaSalle Investment Management acquired a portfolio of nine medical office buildings located in the greater Albany metro region of New York State from New York-based real estate company First Columbia for $100 million. The properties were acquired by LaSalle’s Medical Office Fund II, a private real estate investment trust with $300 million of equity and an approximate $850 million purchasing power.