Northwind secures $342.5m for second healthcare debt fund

Northwind Group has announced the final close of its Northwind Healthcare Debt Fund II (NHDF II), securing total commitments of $342.5m (£260.3m) from US and European investors.

The close surpassed the real estate and private equity firm’s $250m target, attracting a mix of backers including pension funds, insurance companies, family offices and high-net-worth individuals.

Ran Eliasaf, founder and managing partner at Northwind Group, told Alternative Credit Investor that the second fund also brought in new institutional relationships, building on the success of the firm’s first vehicle.

“Investors value the strength and stability of the healthcare real estate market and see our platform as a differentiated way to participate in well-structured credit investments supported by experienced, institutional-calibre operators,” Eliasaf said. “This is a niche strategy with limited participants, and only a few groups have access to opportunities in this space.”

NHDF II provides structured financing and bridge-to-HUD loans secured by income-producing portfolios of skilled nursing and senior housing properties. Eliasaf said deployment will focus on US states with certificate of need laws or similar regulations that limit supply, as well as those with robust state budgets that support skilled nursing and senior housing operators.

Overall, Northwind Group has completed $4.6bn in healthcare real estate transactions across 26 US states.

Commenting on the launch of NHDF III, Eliasaf said: “We continue to have strong access to opportunities within the healthcare real estate credit space and are monitoring the market closely as we focus on deploying capital from NHDF II. We remain disciplined and selective in our approach to new lending opportunities, while assessing the right timing for potential future vehicles once we reach target deployment.”