Funds affiliated with BDT & MSD Partners have entered into an agreement to acquire Sunrise Senior Living from the Public Sector Pension Investment Board in partnership with Sunrise’s senior leadership team.
Chief Executive Officer Jack R. Callison Jr. and other senior Sunrise executives will remain with the company and invest significant personal capital alongside BDT & MSD’s majority investment.
Sunrise operates more than 230 senior living communities in the U.S. and Canada, serving more than 22,000 residents.
Its platform includes third-party management operations, an active joint venture investment business, and a development pipeline exceeding 50 new communities.
Those projects have an expected development cost of approximately $7.5 billion.
BDT & MSD plans to support further expansion of Sunrise as demographic changes increase demand for senior housing and care.
The investor has experience across real estate operating companies, hospitality and residential assets, including investments in Greystar, Speed Bay and Auberge Collection.
PSP Investments initially invested in Sunrise in 2014 and became sole owner of the company in 2023.
The pension investment manager is selling Sunrise as part of a broader portfolio rotation strategy.
The transaction is expected to close in 2027, subject to customary regulatory approvals.
J.P. Morgan Securities and Jones Lang LaSalle Securities are advising PSP Investments.
KEY QUOTES:
“Sunrise is guided by a singular purpose: championing quality of life for older adults by creating environments that support longer, healthier, and happier lives. We thank PSP Investments for its support during a period of strong growth and evolution for Sunrise. We are excited to build on that progress with BDT & MSD as our majority investor, whose long-term approach and deep experience across hospitality, development, and real estate operations will complement our team’s expertise and help accelerate Sunrise’s next phase of growth. They share our values and our commitment to the residents and families we serve. Together we will continue to invest in our people, our culture, and the resident experience as we bring Sunrise’s approach to lifestyle, wellness, hospitality and care to more families.”
Jack R. Callison Jr., Chief Executive Officer of Sunrise Senior Living
“Sunrise is a category-leading business with an exceptional leadership team, trusted brand, and proven operating platform. We have a longstanding relationship with Jack and his team and tremendous respect for the culture and organization they have built. The need for high-quality senior living is growing, and we believe Sunrise has the leadership, reputation, and platform to meet it. We look forward to working alongside the Sunrise team and building on the Company’s legacy for many years to come.”
Coburn Packard, Head of Real Estate Equity at BDT & MSD Partners
“Sunrise is a clear example of our approach to real estate investing: executing a disciplined business plan, backing an exceptional management team, positioning the Company for continued success and crystallizing the value we’ve built for the contributors and beneficiaries we serve. This transaction reflects our portfolio rotation strategy, recycling capital from a successfully executed investment into new opportunities.”
Simon Marc, Senior Vice President and Global Head of Private Equity and Real Estate Investments at PSP Investments
