Strategy

503 Capital Partners provides early-cycle debt capital with heavy, escalating covenants in the Education, Senior Living, and Waste Transition sectors. Our investments are typically lower-middle market transactions collateralized primarily by the project itself.

We seek to generate attractive total returns with an emphasis on tax-exempt, current income, driven secondarily by capital appreciation. We focus on essential assets in sectors that are experiencing structural tailwinds. These projects positively impact communities while remaining mostly uncorrelated to broader market trends.

Investment Strategy

Our investment approach is thorough and systematic, focusing on operators and developers with proven track records. Our assessment of potential assets includes macro characteristics, local trends, and site visits, among other factors.  These evaluations are concluded before a financial viability assessment. We also engage with project stakeholders. All this is done before determining financial viability.

After credit analysis, each deal is rated for facility risk, helping us evaluate investment risk/return. Specializing in specific sectors, we have a track record of delivering low risk and attractive returns for investors.

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Verticals

education

education

  • Charter schools
  • Early education
  • Private schools
Senior Living

Senior Living

Senior Living

  • Independent Living
  • Assisted Living
  • Memory Care

Medical Care Centers

  • Rehabilitations
  • Psychiatric
  • Substance Abuse
waste transition

waste transition

Waste-to-energy

  • Landfill gas
  • Anaerobic digester
  • Biomass

Waste-to-value

  • Plastic recycling
  • Tire recycling
  • Food waste recycling

Our Approach

503 Capital Partners offers tax-exempt and taxable bonds to operators and developers, typically as senior secured debt. Subordinated debt may also be provided when there is sufficient equity and the senior lender's capital is limited. 

Loans often have the following characteristics:

  • Targeted investment size of $10-30 million, at times phased over stages
  • Flexible maturities that tend to fall inside of 10 years
  • Fixed interest rates
  • Federally tax-exempt coupons
  • Optional call provisions that allow borrowers to exit early – improving returns and reducing duration risk

Work With Us

If you are an operator or developer in the Education, Senior Living, or Waste Transition sectors and you’d like to discuss ways to partner, please contact us at ir@503capitalpartners.com