StepStone Real Estate and GREYKITE have announced plans to recapitalize Vitalia, Spain's second-largest operator of care homes, by acquiring a majority stake from Vivaly Investments BV, which is part of CVC Fund VI and Portobello Capital Fund III. Additionally, there is a commitment of over EUR 500 million in growth capital. Both Vivaly Investments BV and the founder and senior management team of Vitalia will maintain minority interests. GREYKITE will serve as the general partner for the shareholders and oversee daily operations of the investment. The transaction is pending standard regulatory approvals. Vitalia sets the benchmark for residential quality in Spain with its 'homes for living' model, which emphasizes a resident-focused care approach that includes at-home and on-site rehabilitation, tech-enabled 24-hour medical support, and a restraint-free environment. Vitalia benefits from a top-tier management team that has been with the company since its beginning and has more than 50 years of combined experience. The company currently operates 75 care home facilities and has a significant secured pipeline of new developments, aiming to own and manage around 15,000 beds across Spain. With a 2.5% market share in a fragmented and undersupplied sector, and demand driven by Spain's rapidly aging population, the company is well-positioned to address a projected 40% shortfall in new care home delivery by 2030 by delivering approximately half of the new beds during that period. This transaction comes after the successful closing of StepStone Real Estate Partners V in April, which raised over $5 billion in total commitments, including affiliated discretionary co-investment vehicles. This deal marks the tenth investment in SREP V and the largest so far, highlighting SRE's GP-Led strategy of recapitalizing established real estate platforms alongside current managers and owners. It also reflects StepStone's growing interest in Spain, where the firm is expanding across various strategies, including primary capital deployment into Spanish funds. Importantly, this investment enhances SRE's successful global track record in healthcare real estate, where it will manage approximately $5 billion in assets under management post-transaction. This transaction also follows the official launch of GREYKITE and its first discretionary real estate fund, GREYKITE European Real Estate Fund I, in March 2024. Vitalia will be the Fund’s eighth portfolio company investment and the second based in Spain, aligning with GREYKITE's focus on thematic real estate platform investments across the broader Living, Industrial, and Digital sectors.
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