An investment firm connected to tech mogul Michael Dell is making its first investment into senior housing with a billion-dollar acquisition.
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BDT & MSD Partners is taking over a majority stake in Sunrise Senior Living, the fifth-largest player in the sector with more than 230 communities in the U.S. and Canada. The seller is Canada’s Public Sector Pension Investment Board.
Financial terms for the deal weren’t disclosed, but a source familiar with the deal told The Wall Street Journal that “the buyer values the deal” at more than $1B.
BDT & MSD, PSP and Sunrise didn’t immediately respond to Bisnow’s requests for comment Tuesday morning.
Existing Sunrise management will stay in place after the deal closes sometime next year.
The acquisition is the first push into senior housing for BDT & MSD, which manages roughly $20B in assets but has focused on hospitality with investments including luxury hotels The Boca Raton and Four Seasons Hualalai and a stake in the Auberge Collection.
Sunrise, which is also focused on providing a high-end senior living experience, serves more than 22,000 residents but owns less than a quarter of its properties, instead operating through management agreements, according to the WSJ. BDT & MSD plans to marry its deep hospitality expertise with Sunrise’s operational track record to continue expanding the platform.
Most of Sunrise’s communities are more than 90% leased, and the company charges roughly $10K a month for assisted living, offering the full continuum of services from independent living to memory care, CEO Jack Callison Jr. told the WSJ.
BDT & MSD, with dual headquarters in New York and Chicago, was formed through a 2022 merger. MSD managed assets for the family of Michael Dell, founder and CEO of the namesake computer company, world’s sixth-richest person, and other investors.
The combined firm no longer manages Dell's investments, but he sits on its advisory board.
The investment firm is one of several looking to capitalize on the aging baby boomer population’s demand for senior care services and an expected flood of demand that can’t be matched by current supply.
Senior housing occupancy passed 90% in the third quarter, approaching record levels, while new construction is slowing down, with a 1% decline in the quarter leaving 16,159 units under construction, according to NIC.
Investors spent $12.1B on senior housing assets in the first quarter of 2026, the highest of any quarter in 20 years. American Healthcare REIT announced a $1.5B deal at the start of last month to acquire 16 assets from multiple sellers.
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