Formation Capital is an equity investment and asset management company in the senior housing and care industry. The unique integration of real estate and operating dynamics in this asset class makes it unlike any other real estate investment platform. For this reason, Formation Capital has developed an experienced staff and unique approach to investing in and overseeing this sector and asset class.
Alignment of interests has been the foundation of our investment criteria. Whether it is with our capital partner or operating partner (tenant), we go to great lengths to appropriately align the interests of our partners in such a way that mutual success is the motivation of all parties. It is our belief that the senior housing business, more specifically the nursing care industry, is a hybrid of real estate and operating business. This dynamic encouraged Formation Capital to design an approach to investment that is completely unique. Formation Capital targets high quality operating companies and has designed an approach which separates the real estate (capital infusion) and the operating company (triple net lease). This structure allows for value enhancement in the future, based on the economics of the potential arbitrage between real estate markets, capital markets or corporate markets, should one or the other trade at a premium. For instance, if the real estate markets were to decline but the corporate or public markets became enhanced, our model allows for us to realize that arbitrage through our alignment and structure. Formation believes that this is the most applicable and appropriate structure for both investors and operators and truly gives Formation an advantage in the Senior Housing market today.
The focus of our business involves the following:
The other strategy Formation Capital has developed and become recognized for is its innovative approach to structuring successful transactions. By balancing the needs of capital and operations in a fair and thoughtful manner, Formation has become recognized as a leader in equity investment in senior housing and care.
Formation Capital and its principals are executives who pride themselves on thorough and diligent underwriting depth, as well as their ability to asset manage and troubleshoot operational issues before they manifest.
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