BDT & MSD Partners to Acquire Sunrise Senior Living From PSP Investments in Deal Valued at About $1 Billion
MCLEAN, Va. — Funds affiliated with BDT & MSD Partners have entered into a definitive agreement to acquire Sunrise Senior Living from the Public Sector Pension Investment Board, known as PSP Investments, the companies announced Oct. 6. The deal is a majority investment made in partnership with Sunrise's senior leadership team, led by Chief Executive Officer Jack R. Callison, Jr. The transaction, valued at approximately $1 billion, is expected to close in 2027, subject to customary regulatory approvals.
Sunrise Senior Living Transaction Details
Under the agreement, BDT & MSD Partners becomes Sunrise Senior Living's majority investor, taking over from PSP Investments. Sunrise's senior leadership team will remain in place after the transaction and continue to manage the company's communities. Management will invest significant personal capital alongside BDT & MSD's majority investment, according to the announcement.
J.P. Morgan Securities LLC and Jones Lang LaSalle Securities, LLC are serving as advisors to PSP Investments on the transaction.
Sunrise's U.S.-Canada Platform
Founded in 1981, Sunrise operates more than 230 communities across the United States and Canada and serves more than 22,000 residents. The company is an operator, owner and developer of private-pay luxury and premium senior living communities, offering independent living, assisted living, memory care and other specialized services.
The platform also includes a third-party management business, an active joint venture investment platform and a development pipeline of more than 50 new communities. Sunrise puts the expected development cost of that pipeline at approximately $7.5 billion, or roughly $150 million per community on average.
The company said generational demographic shifts are driving growing demand for high-quality senior living.
Comments From Callison, Packard and Simon Marc
"Sunrise is guided by a singular purpose: championing quality of life for older adults by creating environments that support longer, healthier, and happier lives," said Jack R. Callison, Jr., Chief Executive Officer of Sunrise Senior Living. He thanked PSP Investments for its support "during a period of strong growth and evolution" and said BDT & MSD's "long-term approach and deep experience across hospitality, development, and real estate operations will complement our team's expertise and help accelerate Sunrise's next phase of growth."
"Sunrise is a category-leading business with an exceptional leadership team, trusted brand, and proven operating platform," said Coburn Packard, Head of Real Estate Equity at BDT & MSD Partners. "We have a longstanding relationship with Jack and his team and tremendous respect for the culture and organization they have built. The need for high-quality senior living is growing, and we believe Sunrise has the leadership, reputation, and platform to meet it."
Simon Marc, Senior Vice President and Global Head of Private Equity and Real Estate Investments at PSP Investments, said the sale reflects the pension investor's approach to real estate. "This transaction reflects our portfolio rotation strategy, recycling capital from a successfully executed investment into new opportunities," Marc said.
PSP Investments' Ownership History
PSP Investments first invested in Sunrise in 2014 and became its sole owner in 2023, a transition the announcement said gave the company flexibility to pursue new growth opportunities and partnerships. PSP Investments, which is headquartered in Ottawa, reported C$320.6 billion of net assets under management as of March 31, 2026.
BDT & MSD Partners' Real Estate Platform
BDT & MSD Partners was formed in 2023 through the combination of BDT & Company and MSD Partners. The firm invests across private capital, private credit and real estate, and says it has invested in or manages approximately $20 billion of real estate through an affiliated investment adviser.
The firm's real estate experience includes investing in and partnering with real estate operating businesses such as Greystar, Speed Bay and Auberge Collection. It also owns and operates assets including Four Seasons Hualalai, The Boca Raton and Four Seasons Jackson Hole, and has developed properties including Naples Beach Club and the soon-to-open Knox Street in Dallas.
Market Context
The transaction pairs a scaled senior living operator with an investor that has hospitality and residential operating experience. Sunrise's private-pay positioning places it in the premium segment of senior housing rather than government-reimbursed care. Its development pipeline, joint venture platform and third-party management business give it several avenues for expansion, and the transaction remains subject to customary regulatory approvals ahead of its expected 2027 closing.
Sources
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