Client: A privately-held, fully-integrated healthcare owner and operator focused in Southeastern U.S. markets.

Challenge: The Client developed a performance track-record with several smaller-sized $100 million closed-end funds. Each of these funds mandated a wind-down (return of capital), therefore placing the Client in a constant fundraising stance. Contrastingly, this Client’s primary customers (healthcare systems) are interested in longer-term relationships. The Company was focused on maintaining and building longer-term investment relationships with these providers, customers, and tenants.

Opportunity: Upon evaluating the institutional closed- and open-ended fundraising marketplace, PalladianRC recommended for the Client to pursue an evergreen private REIT structure via a roll-up of various holding/investment entities. Such a corporate restructuring would allow the client to expand, foster, and maintain long-term ownership in key healthcare assets and tenants/clients.

Solution / Execution: PalladianRC coordinated and advised the Client on the formation of an operating partnership to enable the most extensive collection of options for additional equity-capital growth. PalladianRC worked with the Client to establish fair values for existing Funds’ assets, individual joint venture holdings, and solicitation materials for the existing investors to combine investments into a single vehicle/private REIT. The Client received 94%+ of existing investors to exchange interests (‘roll into’) the private REIT via tax-advantage form, thereby creating the evergreen investment vehicle. PalladianRC subsequently advised on a U.S. $50mm+ institutional structured-equity infusion shortly after completion of the roll-up, accelerating the Client’s growth path and increasing its visibility in the investor marketplace - further validating its business model to a broader investor audience. Lastly, PalladianRC coordinated a competitive financing process between several of the ten largest U.S. banking/lending institutions to provide the Client’s first $100mm+ corporate-/portfolio-based lending facility - increasing their effectiveness and credibility in forward funding.

[This private company has been a PalladianRC customer and relationship for 8 years; PalladianRC has been an investor in pre-roll-up investments with this Client, and has additional investment in the Client’s private REIT]