BDT & MSD Partners strikes major deal in the US senior housing market

BDT & MSD Partners is acquiring a controlling stake in one of North America’s largest operators of luxury senior living communities. With more than 230 communities, 22,000 residents and a development pipeline valued at $7.5 billion, Sunrise Senior Living is at the centre of a market driven by an ageing population.

The seller is Canada’s Public Sector Pension Investment Board (PSP Investments), which first invested in Sunrise in 2014 and acquired full control of the company in 2023.

Under the terms of the agreement, BDT & MSD will acquire a majority stake in the business, while the current management team, led by Chief Executive Officer Jack Callison Jr., will retain a minority interest and make a significant equity investment of its own.

The exact ownership percentages and detailed financial terms have not been disclosed. The transaction is expected to close in 2027, subject to the receipt of the necessary approvals.

A Platform Comprising 230 Communities and 22,000 Residents

Founded in Virginia in 1981 by Paul and Terry Klaassen, Sunrise Senior Living has grown into one of the leading senior living operators in the United States and Canada. The company currently operates more than 230 residential communities, serving over 22,000 residents. It ranks fifth among the largest senior living operators in North America.

Sunrise operates across four core service categories: independent living, assisted living, specialised memory care and additional personalised health and wellness services.

The company owns less than one-quarter of the properties it operates, with most of its business conducted through management agreements with third-party property owners and investment vehicles. Consequently, the acquisition is not simply an investment in real estate assets. Rather, it represents the acquisition of an integrated operating platform combining property management, hospitality services, senior care and the development of new communities.

$7.5 Billion Investment Programme Across More Than 50 New Communities

Sunrise has a pipeline of more than 50 new residential communities at various stages of planning and development, with an estimated total development cost of approximately $7.5 billion. Investment decisions are based on more than 23 weighted criteria, including demographic composition, purchasing power, rental rates, labour costs and the existing supply of competing facilities.

Sunrise operates at the premium end of the market, primarily serving older adults with high incomes and substantial assets. According to information disclosed in connection with the transaction, the monthly cost of assisted living is approximately $10,000, depending on location and the services provided. The model combines elements of luxury hospitality, residential living and personalised care.

At Sunrise communities in Manhattan, for example, residents have access to Broadway theatre performances and educational activities involving students from Juilliard.

The company invests in wellness, dining, social activities and personalised services, seeking to transform senior housing from a traditional care facility into a comprehensive lifestyle offering.

This strategy is also reflected in occupancy rates. According to management, most communities maintain occupancy rates of at least 90%, while some have waiting lists.

In 2026, the oldest members of the baby boomer generation turn 80, creating a new and steadily expanding pool of potential customers for professionally managed senior living communities.