Hammes Partners principal talks about the firm’s new $430M investment fund
By John B. Mugford
Todd Kibler
In the context of what can be considered the rather brief history of healthcare real estate, a sector that did not really take off until the early 2000s, Hammes Company Healthcare has been around for a long, long time.
Since its founding in 1993 by Jon Hammes, the Brookfield, Wis.-based firm has developed more than 500 healthcare facilities – both ambulatory and inpatient – and, more often than not, has led the country in annual healthcare development square footage and dollar value, according to the Modern Healthcare magazine’s annual construction and design survey.
Along the way, the firm added acquisition capabilities, tapping into a network of high net-worth individuals and other investors to make purchases totaling nearly $600 million since 2001 through its Hammes Partners fund.
In recent years, as the company’s leaders looked at the changing healthcare landscape and considered all of the real estate that would be needed to usher in a new era fueled in part by the Patient Protection and Affordable Care Act (PPACA) and the changing needs of healthcare consumers, they concluded that the company would need to compete with the more deep-pocketed players in the healthcare real estate arena.
Hence the launching of its second investment fund, Hammes Partners II, which was marketed to institutional investors and designed to give the company the ability to engage in larger, more expensive projects and to be involved in multiple projects, or acquisitions, at any given time.
Helping to lead Hammes Partners II is Todd W. Kibler, a principal and member of the investment committee along with Mr. Hammes and his son, Patrick Hammes. Prior to joining Hammes Partners, Mr. Kibler spent about a decade as a partner with Hammes Company Healthcare, serving as the chief financial and investment officer.
We caught up with Mr. Kibler just as Hammes Partners II was closing to new investments, as it had raised more than $430 million in less than three years from institutional investors such as state pension funds, endowments and foundations, and insurance companies. By leveraging the capital in the fund, Hammes could spend anywhere from $1.2 billion to $1.5 billion on new developments and acquisitions.
1) Todd, can you talk a bit about why Hammes started this second fund and the difference between it and the first Hammes Partners fund.
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