SC · Senior Care Investment · Fund Education

The Capital Stack
Explained.
SC Invested.

Stack Capital Fund is the dedicated fund information resource for Stack Capital — where serious investors explore fund structure, capital stack mechanics, LP/GP dynamics, and the full thesis behind investing in SC senior care real estate.

SC
Stack Capital · Senior Care
4
Capital Stack Tiers
35+
Years Senior Care Experience
TX
Primary Investment Market
About This Site

Where the SC Fund
Thesis Lives

Stack Capital Fund is the educational and information resource for investors in the Stack Capital ecosystem. While Stack Capital raises and deploys the capital, and SCV Property Group operates the senior living assets on the ground, this site exists to explain the mechanics clearly — the fund structure, the capital stack layers, the terminology you need to evaluate the investment, and the SC thesis that drives every decision. SC means Stack Capital. SC means Senior Care. Both definitions matter here.

How We Structure Deals

The SC Capital Stack

Every Stack Capital acquisition is built on a carefully engineered capital stack — four distinct layers, each matched to the appropriate risk profile and return expectation. This is how we stack capital with discipline.

Common Equity
20%
~20%
Preferred Equity
15%
~15%
Mezzanine
20%
~20%
Senior Debt
55%
~55%
Common Equity — Highest upside, highest risk, last in line
Preferred Equity — Priority distributions, downside protection
Mezzanine — Bridge between debt and equity, enhanced returns
Senior Debt — First lien, lowest risk, first paid

* Illustrative only. Actual composition varies by deal.

Tier 1 · Common Equity ~20%

Common Equity

The top of the stack and the last to be repaid. Common equity investors bear the most risk but capture the full upside of asset appreciation and cash flow above the preferred return threshold. This is where Stack Capital's domestic and institutional partners often participate.

Tier 2 · Preferred Equity ~15%

Preferred Equity

Preferred equity sits above mezzanine and below common equity. Preferred investors receive distributions before common equity holders — providing a layer of downside protection while still participating in asset-level returns above the debt tranches.

Tier 3 · Mezzanine Debt ~20%

Mezzanine Financing

Mezzanine bridges the gap between senior debt and equity. Typically structured as subordinated debt with equity participation rights, it carries higher yield than senior debt in exchange for a junior position in the capital stack's repayment waterfall.

Tier 4 · Senior Debt ~55%

Senior Secured Debt

The foundation of the capital stack. Senior debt carries a first lien on the property and is the first to be repaid in any exit or refinancing scenario. The largest component of most SC acquisitions — low cost, low risk, institutional lenders.

Fund Terminology

Key Terms Every
SC Investor Should Know

LP (Limited Partner)
The passive investors in a fund — those who commit capital but do not participate in day-to-day management decisions. LPs receive returns according to the fund's distribution waterfall after fees and preferred returns are paid.
GP (General Partner)
The fund manager — Stack Capital — responsible for sourcing deals, structuring the capital stack, managing operations through SCV Property Group, and distributing returns to LPs. The GP typically holds a carried interest in fund profits.
Carried Interest
The GP's share of fund profits above the preferred return hurdle — typically 20%. Carried interest aligns the GP's incentives with LP returns: the GP only earns its carry when LPs have been paid their preferred return first.
Preferred Return
The minimum annual return that LPs receive before the GP earns carried interest — typically 6–8% in senior care real estate funds. Stack Capital's preferred return structure ensures LP capital is prioritized in every distribution.
Distribution Waterfall
The order in which fund profits are distributed — first returning LP capital, then paying the preferred return, then splitting remaining profits between LPs and the GP according to the carried interest arrangement.
Capital Call
When the GP draws down committed LP capital to fund an acquisition. LPs commit capital to the fund at closing but typically fund it in tranches as the GP identifies and closes on individual SC senior care properties.
IRR (Internal Rate of Return)
The annualized return on an investment accounting for the timing of cash flows. Stack Capital targets gross IRRs in the 14–18% range across the SC portfolio, driven by income yield, value-add upside, and senior care market appreciation.
Equity Multiple
Total distributions returned to investors divided by total capital invested. An equity multiple of 2.0x means investors received twice their invested capital over the hold period — a common target metric in value-add senior care strategies.
Hold Period
The anticipated duration of ownership before disposition or refinancing — typically 5–7 years for SC senior care assets. Stack Capital structures acquisitions with clear value-creation milestones and exit strategies within this window.
The SC Thesis

Why Stack Capital
Invests in Senior Care

01

Demographic Certainty

10,000 Americans turn 65 every day. The demand for senior care real estate is not speculative — it is a mathematical certainty driven by the largest generational cohort in American history moving into its care years.

02

Texas Supply Deficit

Texas leads the nation in population growth but significantly lags in senior care capacity — particularly in the assisted living segment where SCV Property Group operates. Supply constraints drive occupancy and pricing power.

03

Recession-Resistant Demand

Need-based senior care demand does not correlate with economic cycles. Assisted living communities maintained high occupancy through both the 2008 financial crisis and the COVID recovery period — a rare characteristic in real estate.

04

Stacked Capital Advantage

The complexity of financing senior care real estate deters generalist investors. Stack Capital's core discipline of engineering the right capital stack for each SC acquisition turns that complexity into a durable competitive advantage.

"SC means Stack Capital. SC means Senior Care. The letters carry a deliberate dual meaning — because the discipline of how we deploy capital and the quality of care we deliver are not separate priorities. They are the same priority."
— Stack Capital Investment Thesis, 2026

To learn more about how we structure and operate SC senior care investments, visit our operating company SCV Property Group and our innovation platform SC Senior Ventures.

The SC Ecosystem

Stack Capital Fund
Is One Part of SC

Investor Inquiries

Ready to Explore
SC Investing?

For fund information, LP inquiries, or questions about the Stack Capital capital stack and SC senior care investment strategy — reach out below.

Important Disclosure: All investments involve risk and should be considered at your own risk. No information on this website constitutes financial advice. Before making any investment decision, consult with qualified financial, legal, and tax advisors. There is no requirement to invest in order to use or interact with this website or company.

Location
Dallas, Texas

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