StepStone Real Estate, the real assets investment arm of StepStone Group, has partnered with Blue Moon Capital Partners to recapitalize a portfolio of stabilized senior housing communities through a $250 million continuation vehicle. The transaction provides liquidity to existing investors while extending ownership of assets that have reached operational maturity.

The portfolio consists of five Class-A senior housing properties across independent living, assisted living, and memory care. These communities were originally developed or repositioned by Blue Moon and have achieved stabilized occupancy and cash flow, positioning them as lower-risk institutional holdings relative to development-stage assets.

Importantly, the recapitalization preserves operating continuity. Established management partners—including Senior Lifestyle, LCB Senior Living, and Ascent Living Communities—will continue to operate the assets. This structure reflects a growing preference among institutional investors to back proven operators rather than pursue operational changes during recapitalization events.

Beyond providing investor liquidity, the continuation vehicle is structured as a scalable platform. StepStone and Blue Moon intend to pursue additional acquisitions, leveraging improving senior housing fundamentals, favorable demographic trends, and a narrowing bid-ask spread as capital cautiously re-enters the sector.

➤ TAKEAWAY

This transaction signals that institutional capital is again willing to commit long-duration equity to stabilized senior housing—provided assets are operationally sound and aligned with experienced sponsors. Continuation vehicles are emerging as a preferred solution for liquidity without forcing asset sales in a still-recovering transaction market.