Harrowgate Capital Partners · Fund IV

Investment committee · Item 3

Caldwell Health, 7 hospitals, 2,140 beds, 3 states.
Acquired 2022. Equity invested$420M
Buyer for the real estate: Meridian Medical Properties.
Sale price$1,100M
Rent, year one$92M
Rent escalator2.5% a year, 15 years
Distribution to Fund IV on close$790M
Caldwell operating margin, trailing1.8%
Caldwell operating margin after rent−2.6%
Caldwell cash on hand after close11 days
What the analyst was told