Private equity’s growing presence in senior living

The report examines the rise of private equity (PE) investment in the U.S. assisted living sector, highlighting a significant regulatory gap compared to nursing homes. It details the activities of major firms like KKR, Bain Capital, Harrison Street, and Kayne Anderson, who have deployed billions into senior housing through real estate funds and REITs. The author contends that the PE model of seeking high short-term returns is incompatible with long-term care, potentially leading to increased rents, reduced staffing, and diminished care quality for older adults.

• Assisted living in the U.S. is significantly under-regulated compared to nursing homes; while nursing homes receive state and federal funding, the majority of assisted living residents pay privately, and the federal government does not oversee these facilities.
• The lack of oversight has resulted in critical data gaps, such as the inability of federal records to track the number of deaths in assisted living communities during the pandemic or the frequency of resident evictions.
• Private equity firms have aggressively expanded into senior living since 2015, often by acquiring properties from real estate investment trusts (REITs), with private buyers averaging $1.5 billion in quarterly transactions between 2016 and 2020.
• Major private equity firms have established multi-billion dollar funds targeting senior housing: KKR closed a $4.3 billion real estate fund in 2021; Bain Capital closed a $3 billion fund in 2021; Harrison Street invested over $7 billion in senior housing in its first 15 years; and Kayne Anderson closed a $2.75 billion fund in 2021.
• The private equity business model, which prioritizes large financial returns within three to four years, may negatively impact residents through increased rents, reduced care staffing, and a lack of facility improvements.

APA

Private Equity Stakeholder Project (2023). Private equity’s growing presence in senior living. https://pestakeholder.org/news/private-equitys-growing-presence-in-senior-living/

Chicago

Private Equity Stakeholder Project. Private equity’s growing presence in senior living. 2023. https://pestakeholder.org/news/private-equitys-growing-presence-in-senior-living/.

Wikipedia

{{cite report |author=Private Equity Stakeholder Project |title=Private equity’s growing presence in senior living |date=1 December 2023 |url=https://pestakeholder.org/news/private-equitys-growing-presence-in-senior-living/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{privateequitystakeholderproject2023private, author = {{Private Equity Stakeholder Project}}, title = {{Private equity’s growing presence in senior living}}, institution = {Private Equity Stakeholder Project}, year = {2023}, month = dec, url = {https://pestakeholder.org/news/private-equitys-growing-presence-in-senior-living/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }