Investing in senior living isn’t just a financial decision—it’s a commitment to impact, integrity, and income. As more accredited investors turn their attention to boutique senior living, understanding the legal framework, financial expectations, and operational model becomes essential. Here’s what every investor should know before joining a fund like Shepherd Premier Senior Living Fund (SPSLF).
🔐 STRUCTURE: Legal Guardrails That Protect You
When investing in SPSLF, you’re entering a private real estate fund governed by a Limited Partnership Agreement (LPA). This contract lays out everything from roles and responsibilities to the distribution waterfall.
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General Partner (GP) runs daily operations and makes decisions.
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Limited Partners (LPs) provide capital and share in profits, but don’t manage daily affairs.
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Preferred Return usually ranges from 8–10%, after which the GP earns a “carry” (performance-based share).
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Capital Calls can happen in stages. If you don’t fund a call, penalties like dilution may apply.
📌 These are illiquid investments—there’s no public market. Transfers usually require GP consent and may face penalties.
📊 RETURNS: The 14% → 8% Arbitrage
Shepherd’s unique edge lies in acquiring homes at a 14% cap rate and refinancing at 8% after occupancy and operations improve.
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Target IRR: 15–20% over 7–10 years.
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Equity Multiple: ~2x or more.
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Cash-on-Cash: ~10% annually once stabilized.
This strategy rewards long-term investors who understand real estate cycles and HUD refinancing timelines.
⚠️ RISKS: Know What You’re Signing
This isn’t a risk-free venture—and SPSLF doesn’t pretend it is.
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Illiquidity: No secondary market.
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Senior care-specific risks: Staffing, lawsuits, regulatory hurdles.
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Leverage: Fund performance is partially reliant on successful refinancing.
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No Guarantees: All projections are forward-looking and subject to change.
🛑 Past performance does not guarantee future results.
🧠 SUITABILITY: Are You the Right Fit?
This fund is only open to accredited investors under SEC Rule 506(c). You’ll need to verify your income/net worth and affirm your ability to handle a total loss. Ideal investors include:
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Family offices seeking ESG impact 📈
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HNWIs with real estate experience 🏘️
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Healthcare-aligned PE funds 💼
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Retirees prioritizing income and stability 👴👵
🧩 WHY IT MATTERS
Investing in boutique senior living means choosing purpose-driven returns. You help redefine how America cares for its aging population while accessing the upside of cap-rate arbitrage and synergy-driven operations.
For more information and an exclusive white paper, please call or text Derek at 808-721-8189 📞.
