Tiptree Trades CareIT, Takes Invesque Stake

NEW YORK CITY—Closing the circle on an ownership story that began in 2010, Tiptree Inc. has traded its Care Investment Trust LLC (CareIT) subsidiary to Invesque Inc. Valued at $425 million, the sale involves the issuance of approximately 16.6 million shares of Invesque stock at $9.75 per share, along with the assumption of $260.7 million of mortgage debt. Tiptree and Invesque first announced the transaction this past November.

The stock issuance gives Tiptree a stake of about 34% in Carmel, IN-based Invesque, formerly known as Mainstreet Health Investments prior to the deal to acquire the CareIT platform. Tiptree may increase or decrease its Invesque interest over time, the company said Thursday.

For Invesque, the deal has doubled the size of its portfolio, adding 35 assisted living and memory care properties and seven skilled nursing facilities across 11 states. The CareIT portfolio consists of 24 properties leased to operators under long-term triple-net leases and 18 operating properties in joint venture arrangements with seniors housing operators in which Invesque now owns the majority of the real estate and the operations. Invesque's portfolio now totals 84 properties with over 8,800 beds across 19 states and one Canadian province, and its book value has increased to about $1.2 billion.

“We've executed a fantastic deal for the shareholders of both companies,” says Michael Barnes, executive chairman of Tiptree. “We are excited to forge a new partnership with the Invesque team and continue to create value.”

Together with other pending or closed sales in 2017, the CareIT deal reduces Tiptree's debt approximately $495 million. Its leverage has been reduced from 2.2x to less than 1.0x.

Tiptree Financial Partners first took a 90% ownership stake in CareIT in August '10. At the end of 2012, CareIT and Tiptree Financial agreed to combine their businesses, forming an operating subsidiary, Tiptree Operating Co. LLC.