Funds affiliated with BDT & MSD Partners have entered into a definitive agreement to acquire Sunrise Senior Living from the Public Sector Pension Investment Board, in a new partnership with Sunrise’s senior leadership team led by chief executive Jack R. Callison Jr. The deal, announced October 6, is expected to close in 2027 subject to customary regulatory approvals. Terms were not disclosed, but people familiar with the matter put the value above $1 billion, making it one of the largest senior housing transactions since the pandemic.
Sunrise operates more than 230 communities across the United States and Canada serving more than 22,000 residents, with most communities at or above 90 percent occupancy. Its platform includes a third-party management business, an active joint-venture investment platform and a development pipeline of more than 50 new communities with expected development costs of approximately $7.5 billion, which Callison called likely the largest actionable pipeline in the industry.
Chief executive Jack R. Callison Jr. and senior leadership stay and are investing personal capital alongside BDT & MSD. It is BDT & MSD’s first senior-housing investment; the firm, rooted in the Michael Dell family office, owns luxury hospitality assets including Four Seasons Hualalai, The Boca Raton and a stake in Auberge Collection.
PSP Investments first invested in Sunrise in 2014 and became sole owner in 2023; it characterized the sale as part of a broader portfolio rotation strategy. J.P. Morgan Securities and Jones Lang LaSalle Securities advised PSP.