Locust Point Capital has announced the final close of Locust Point Private Credit Fund III with $668 million in capital commitments, representing a 56% increase over its $428 million predecessor vehicle. The fund will continue the firm’s strategy of providing structured credit solutions to experienced owner-operators of seniors housing communities across the U.S. 

Fund III targets transactions under $50 million, consistent with Locust Point’s niche in the lower middle market. The firm emphasizes income generation and principal protection, noting that it has never experienced a principal loss since launching in 2015. 

“Having invested in the seniors housing industry for more than three decades, I believe the combination of favorable macroeconomic tailwinds and accelerating demographic-driven demand positions Fund III to be one of our strongest performers to date,” said Eric Smith, co-founder and CEO of Locust Point Capital. 

The fund close also coincides with a leadership shift at the firm: Dan Contardi, co-founder and formerly executive managing director, has been promoted to President. 

To date, Locust Point has raised more than $1.6 billion in capital commitments across its credit-focused vehicles.