When all those millionaires, mutual fund managers and hedge fund investors yank their money out of the stock market, they have to put it somewhere. With the backing of billionaire private equity investor Thomas H. Lee, Bethesda, Md.-based Midcap Financial is one place that money is winding up.
Midcap Financial announced its formation Monday with $500 million in private equity commitments. "Demand for healthcare services is expected to increase markedly as the Baby Boomer generation ages, creating higher demand for the full range of healthcare services," said CEO Howard Widra, founder of Merrill Lynch's healthcare finance division and former president of GE Healthcare Financial Services.
According to Eric Wicklund at Healthcare Finance News, the company will fund the following types of opportunities:
- Real estate loans to senior housing, skilled nursing facilities and medical office buildings.
- Working capital loans collateralized by third-party accounts receivable and their assets.
- Leveraged loans to healthcare companies backed by private equity sponsors.
- Life sciences loans, primarily to pharmaceutical, biotech and medical device companies.
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