Welltower Announces Launch of Private Funds Management Business
Welltower (NYSE: WELL) has launched a private funds management business to manage third-party capital in healthcare and wellness real estate. The Abu Dhabi Investment Authority (ADIA) is committing 20% (up to $400 million) as an anchor LP to the first fund, with Welltower and its management matching this commitment.
The first fund will focus on acquiring seniors housing portfolios in the United States, leveraging Welltower's data science platform. The company has already secured an initial portfolio of six seniors housing communities for $240 million, featuring 778 units with 92% occupancy and 31% NOI margins. Additionally, Welltower is under contract to acquire NorthStar Healthcare Income, comprising 40 seniors housing communities, for approximately $900 million.
The new business aims to generate revenue through asset management fees and carried interest, with management's portion of carried interest being allocated to emerging leaders. The initiative will utilize Welltower's industry relationships, operating platform, and proprietary data science capabilities as competitive advantages.
Welltower (NYSE: WELL) ha avviato un'attività di gestione di fondi privati per gestire capitali di terzi nel settore immobiliare per la sanità e il benessere. L'Autorità per gli Investimenti di Abu Dhabi (ADIA) sta impegnando il 20% (fino a 400 milioni di dollari) come LP principale per il primo fondo, con Welltower e la sua gestione che eguagliano questo impegno.
Il primo fondo si concentrerà sull'acquisizione di portafogli di abitazioni per anziani negli Stati Uniti, sfruttando la piattaforma di data science di Welltower. L'azienda ha già ottenuto un portafoglio iniziale di sei comunità per anziani per 240 milioni di dollari, con 778 unità e il 92% di occupazione e margini NOI del 31%. Inoltre, Welltower è sotto contratto per acquisire NorthStar Healthcare Income, che comprende 40 comunità per anziani, per circa 900 milioni di dollari.
La nuova attività mira a generare entrate attraverso commissioni di gestione degli asset e interessi maturati, con la quota di management degli interessi maturati che sarà destinata a leader emergenti. L'iniziativa utilizzerà le relazioni nel settore di Welltower, la piattaforma operativa e le capacità esclusive di data science come vantaggi competitivi.
Welltower (NYSE: WELL) ha lanzado un negocio de gestión de fondos privados para manejar capital de terceros en bienes raíces de salud y bienestar. La Autoridad de Inversión de Abu Dhabi (ADIA) está comprometida con el 20% (hasta 400 millones de dólares) como LP ancla para el primer fondo, con Welltower y su gestión igualando este compromiso.
El primer fondo se enfocará en adquirir carteras de vivienda para personas mayores en los Estados Unidos, aprovechando la plataforma de ciencia de datos de Welltower. La compañía ya ha asegurado una cartera inicial de seis comunidades para personas mayores por 240 millones de dólares, con 778 unidades y una ocupación del 92% y márgenes de NOI del 31%. Además, Welltower está bajo contrato para adquirir NorthStar Healthcare Income, que comprende 40 comunidades para personas mayores, por aproximadamente 900 millones de dólares.
El nuevo negocio tiene como objetivo generar ingresos a través de comisiones de gestión de activos e intereses devengados, siendo la parte de gestión de intereses devengados asignada a líderes emergentes. La iniciativa utilizará las relaciones industriales de Welltower, su plataforma operativa y sus capacidades exclusivas de ciencia de datos como ventajas competitivas.
웰타워 (NYSE: WELL)는 의료 및 웰빙 부동산에서 제3자 자본을 관리하기 위해 개인 자산 관리 사업을 시작했습니다. 아부다비 투자청(ADIA)은 첫 번째 펀드의 주요 LP로 20%(최대 4억 달러)를 약정하며, 웰타워와 그 경영진이 이를 상응하는 형태로 지원합니다.
첫 번째 펀드는 미국에서 노인 주택 포트폴리오 인수에 초점을 맞추며, 웰타워의 데이터 과학 플랫폼을 활용할 것입니다. 회사는 이미 2억 4천만 달러에 778개 유닛을 보유한 6개의 노인 주택 커뮤니티 초기 포트폴리오를 확보했으며, 점유율은 92%이고 NOI 마진은 31%입니다. 또한, 웰타워는 약 9억 달러에 40개의 노인 주택 커뮤니티로 구성된 NorthStar Healthcare Income를 인수하기 위한 계약을 체결하였습니다.
새로운 사업은 자산 관리 수수료와 발생 이자를 통해 수익을 창출하는 것을 목표로 하며, 경영진의 발생 이자 일부는 신흥 리더들에게 할당될 것입니다. 이니셔티브는 웰타워의 산업 관계, 운영 플랫폼 및 독점 데이터 과학 능력을 경쟁 우위로 활용할 것입니다.
Welltower (NYSE: WELL) a lancé une activité de gestion de fonds privés pour gérer des capitaux tiers dans l'immobilier de santé et de bien-être. L'Autorité d'Investissement d'Abou Dhabi (ADIA) s'engage à hauteur de 20% (jusqu'à 400 millions de dollars) en tant que LP principal pour le premier fonds, avec Welltower et sa direction faisant de même.
Le premier fonds se concentrera sur l'acquisition de portefeuilles de logements pour seniors aux États-Unis, en s'appuyant sur la plateforme de science des données de Welltower. L'entreprise a déjà sécurisé un portefeuille initial de six communautés de logements pour seniors pour 240 millions de dollars, comportant 778 unités avec un taux d'occupation de 92% et des marges NOI de 31%. De plus, Welltower est sous contrat pour acquérir NorthStar Healthcare Income, comprenant 40 communautés de logements pour seniors, pour environ 900 millions de dollars.
La nouvelle activité vise à générer des revenus via des frais de gestion d'actifs et des intérêts courus, une part des intérêts courus étant attribuée à des leaders émergents. L'initiative utilisera les relations industrielles de Welltower, sa plateforme opérationnelle et ses capacités uniques en science des données comme avantages concurrentiels.
Welltower (NYSE: WELL) hat ein privates Fondsmanagementgeschäft ins Leben gerufen, um Kapital von Dritten im Bereich Gesundheits- und Wellnessimmobilien zu verwalten. Die Abu Dhabi Investment Authority (ADIA) verpflichtet sich als Haupt-LP zu 20% (bis zu 400 Millionen Dollar) für den ersten Fonds, wobei Welltower und sein Management dieses Engagement ebenfalls aufbringen.
Der erste Fonds wird sich darauf konzentrieren, Seniorenwohnportfolios in den USA zu erwerben und dabei auf die Datenwissenschaftsplattform von Welltower zurückzugreifen. Das Unternehmen hat bereits ein erstes Portfolio von sechs Seniorenwohnanlagen für 240 Millionen Dollar gesichert, mit 778 Einheiten, einer Belegungsquote von 92% und NOI-Margen von 31%. Darüber hinaus hat Welltower einen Vertrag zur Übernahme von NorthStar Healthcare Income, das 40 Seniorenwohnanlagen umfasst, für etwa 900 Millionen Dollar unterzeichnet.
Das neue Geschäft zielt darauf ab, Einnahmen durch Vermögensverwaltungsgebühren und fällige Zinsen zu generieren, wobei der Anteil des Managements an den fälligen Zinsen an aufstrebende Führungskräfte verteilt wird. Die Initiative wird die Branchenbeziehungen von Welltower, die Betriebsplattform und die proprietären Datenwissenschaftskapazitäten als Wettbewerbsvorteile nutzen.
- Secured ADIA as anchor investor with $400M commitment
- Initial acquisition of 6 properties for $240M with strong 92% occupancy
- Under contract for NorthStar portfolio acquisition worth $900M
- New revenue streams through management fees and carried interest
- Leverages existing data science platform for capital-light business model
- Challenging capital markets with higher interest rates and debt availability
Insights
Welltower's launch of its private funds management business marks a transformative strategic pivot that significantly enhances its business model and competitive positioning. The structure, featuring matching
The timing is particularly astute for three key reasons:
- The seniors housing sector is experiencing a confluence of distressed selling pressure due to debt maturities and improving fundamentals, creating an attractive acquisition environment
- The new platform provides a capital-efficient way to monetize Welltower's proprietary data science capabilities and operator relationships
- The structure generates high-margin, recurring fee revenue streams through management fees and potential carried interest
The immediate deployment into a
This initiative positions Welltower to:
- Scale its acquisition capacity without proportional balance sheet growth
- Generate higher-multiple fee revenue to complement property-level income
- Enhance its competitive moat through expanded data accumulation
- Better weather market cycles with diversified capital sources
The integration of Welltower's proprietary data science platform into its fund management business represents a significant competitive moat. Their progression from machine learning to deep learning and AI, notably preceding the current AI boom, has created a sophisticated system for asset evaluation and optimization.
The platform's value proposition is multifaceted:
- Network effects: Each new acquisition enriches the dataset, improving predictive accuracy and market insights
- Operational optimization: Data-driven insights enable more efficient property management and resident care
- Risk management: Advanced analytics help identify and mitigate potential operational challenges before they materialize
- Deal sourcing: Algorithmic screening of opportunities enables faster, more accurate deal evaluation
The fund structure creates a virtuous cycle where increased scale enhances data accumulation, leading to better decision-making and potentially superior returns. This represents the first attempt to monetize their data science capabilities in a capital-light format, potentially creating a blueprint for future expansion into adjacent business lines.
Through the use of Welltower's industry-leading data science platform, the first fund will seek to identify and acquire seniors housing portfolios in
Welltower believes the backdrop for acquisitions within the seniors housing sector remains attractive, with capital deployment opportunities having expanded further in recent quarters. Despite the sharp improvement in seniors housing fundamentals following the COVID pandemic, challenging capital markets conditions - characterized by substantially higher interest rates and a dearth of debt availability - continue to persist, resulting in a further rise in motivated sellers with a need to address upcoming debt maturities and other capital structure issues. Additionally, ownership of seniors housing remains fragmented, which Welltower believes provides significant longer-term acquisition opportunities.
"We are delighted to announce the formation of Welltower's private funds management business," said Shankh Mitra, Welltower's CEO. "We have been patiently awaiting the optimal environment to launch this platform as the right fund vintage is a key component to driving success of the business. Not only do we believe we are in the early stages of a protracted period of compounding cash flow growth for the seniors housing sector, but also expect our near and long-term capital deployment opportunities to expand meaningfully. Importantly, we expect that Welltower's operating platform and proprietary data science capabilities will serve as a critical resource and competitive advantage for the private funds management business."
Mohamed Al Qubaisi, Executive Director of the Real Estate Department at ADIA, said: "Welltower has a successful track record in the healthcare and wellness real estate sector, based on its operational expertise and an extensive network of operating partners. Its data science-led approach is a key differentiator and will play an important role in the identification and evaluation of opportunities for the new funds management business."
The initial investments by the new business will include a portfolio of six high-quality seniors housing communities for a total purchase price of
In addition, an affiliate of Welltower is under contract to acquire NorthStar Healthcare Income, Inc., comprising a portfolio of 40 seniors housing communities (the "NorthStar Portfolio"), for an enterprise value of approximately
Mr. Mitra added, "We believe that our fellow shareholders will strongly benefit from the creation of a new business vertical for the Company. Our funds management business is intended to result in significant revenue generation opportunities, including asset management fees and potential carried interest upon achieving certain performance hurdles. The new business is also intended to provide a secure source of capital during varying economic cycles to capitalize on potential capital allocation opportunities."
He continued, "We also believe the new business will play a critical role in supporting the career goals of key talent at both Welltower and our operating partners, an important aspect to sustaining our current growth trajectory. At Welltower, following years of training, mentorship and development of our team members, we have created a deep leadership bench, which is instrumental to driving our growth - but this effort has not gone unnoticed as we've fostered the most sought-after talent in the real estate space. In our commitment to retaining the next generation of leadership at the Company, management's portion of any carried interest earned from the fund will be fully allocated to our next generation of emerging leaders. While Welltower's executive officers will participate in the new business as investors, they will be ineligible to receive any carried interest. This action constitutes the second step of Welltower's long-term talent retention strategy as outlined in our press release dated January 2, 2025. Additionally, we expect the assets targeted by the funds management business to further enhance the deep regional density that Welltower has created over many years. Our regional densification strategy is especially important to providing career growth opportunities for site level employees and reducing the employee turnover that has long plagued our industry. These actions drive a better experience and higher satisfaction for key stakeholders – the residents and the employees in all our communities in the regional area."
Mr. Mitra added, "The data accumulated from acquired properties will further enhance the network effect we have already created within our data science platform, resulting in a wider and deeper moat for Welltower. Over the past decade, we have built a unique data science platform, the first of its kind in the real estate industry, powered initially by machine learning, then deep learning, and finally by AI - all prior to these terms entering the mainstream vernacular. The funds business represents our first foray into creating a capital light monetization of our data science platform.
Mr. Mitra concluded, "As evidenced by our recent announcements, including the strengthening of our leadership team and today's launch of our private funds management business, Welltower will continue to pursue all opportunities to extend the duration of our long-term compounding of per share cash flows for our existing owners."
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any security, nor shall there be any sales of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
Forward-Looking Statements and Risk Factors
This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. When Welltower uses words such as "may," "will," "intend," "seek," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, Welltower is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause Welltower's actual results to differ materially from Welltower's expectations discussed in the forward-looking statements. This may be a result of various factors, including, but not limited to: the status of the economy; the status of capital markets, including availability and cost of capital; issues facing the health care industry, including compliance with, and changes to, regulations and payment policies, responding to government investigations and punitive settlements and operators'/tenants' difficulty in cost effectively obtaining and maintaining adequate liability and other insurance; changes in financing terms; competition within the health care and seniors housing industries; negative developments in the operating results or financial condition of operators/tenants, including, but not limited to, their ability to pay rent and repay loans; the success of Welltower's efforts to establish and develop new teams and strategies; the ability of Welltower's investment teams to identify appropriate investment opportunities; the conditions impacting the private fund management industry, including its competitiveness and the level of regulation on private fund managers; Welltower's ability to successfully compete for private fund investors, professional talent and investment opportunities, and to effectively manage investor withdrawals; Welltower's ability to appropriately manage conflicts of interest; the expected concentration of private fund investments in healthcare properties; Welltower's ability to transition or sell properties with profitable results; the failure to make new investments or acquisitions as and when anticipated; natural disasters, health emergencies (such as the COVID-19 pandemic) and other acts of God affecting Welltower's properties; Welltower's ability to re-lease space at similar rates as vacancies occur; Welltower's ability to timely reinvest sale proceeds at similar rates to assets sold; operator/tenant or joint venture partner bankruptcies or insolvencies; the cooperation of joint venture partners; government regulations affecting Medicare and Medicaid reimbursement rates and operational requirements; liability or contract claims by or against operators/tenants; unanticipated difficulties and/or expenditures relating to future investments or acquisitions; environmental laws affecting Welltower's properties; changes in rules or practices governing Welltower's financial reporting; the movement of
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SOURCE Welltower Inc.
FAQ
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