Established in 1999, Formation Capital is a private investment management firm focused on seniors housing and care, post-acute and healthcare real estate investments. Our fully integrated investment platform combines acquisition and asset management specialization for a sector that requires a unique skill set to manage the real estate and operational complexity inherent in every opportunity. This dynamic encouraged Formation Capital to design a distinct investment approach that captures maximum value in the future, based on realizing arbitrage between real estate markets, corporate markets and capital markets today.
Our in-house clinical advisory team, Formation Healthcare Group and development team, Formation Development Group, complement an experienced management team with expertise in healthcare, real estate, structured finance, corporate mergers and acquisitions, restructurings and value-add asset management.
Formation Capital targets high quality healthcare operating companies in the seniors housing and care and post acute sectors. Companies in these sectors are typically real estate based, with services provided in or to a healthcare facility. Our unique approach to transaction structuring separates the real estate from the operating company, maintaining the relationship through a triple-net lease, structured to align interests and capture future value enhancement. Our innovative approach enables Formation Capital to identify risk arbitrage in an investment structure and to allocate our capital quickly to capitalize on temporary market inefficiencies.
Our investment strategy balances the needs of capital and operations and structures investments to meet standards of high quality care. Our deep ties with industry leaders allow us to partner with best-in-class operators and our long-standing commitment to seniors housing and post acute care gives us an advantage underwriting (pre-acquisition) and managing (post-closing) healthcare investment risks.
Prior to an exit event, Formation Capital tailors a value-add business plan for each investment, which may include investing in capital expenditures and facility modernization, building a platform through add-on acquisitions, implementing best practices from our portfolio companies and funding growth capital to drive organic and external growth.