Great Elm Capital (GECC), a business development company, launched Great Elm Healthcare Finance (GEHF) with an affiliate of Berkadia Commercial Mortgage as its strategic minority partner. Led by healthcare finance veteran, Michael Gervais, and a management team with significant healthcare expertise, GEHF will also be supported by Great Elm Specialty Finance’s existing infrastructure.
“On behalf of Great Elm Specialty Finance, we are thrilled to partner with Berkadia on this venture,” Michael Keller, president of GECC’s specialty finance business said. “We have a long-standing relationship with Berkadia’s senior management and have worked with them on numerous opportunities over the years. We believe we have a high-quality management team led by Mike Gervais. He has a tremendous track record of building healthcare financing businesses. Together, the GECC/Berkadia partnership, healthcare management team and Great Elm infrastructure will allow this venture to begin on an accelerated path.”
“We are thrilled to partner with GECC on this venture. Berkadia is constantly developing solutions for our clients and this partnership expands the suite of products to assist our clients in the seniors housing and healthcare sectors,” Steve Ervin, SVP and head of Berkadia’s FHA and seniors housing finance group, said.
Headquartered in Nashville, TN, GEHF will be led by CEO, Michael Gervais, Ray Zilke as vice president of portfolio and Chad Kerr as vice president of credit, a management team with substantial expertise in the healthcare space. GEHF will provide healthcare operators’ capital for working capital, refinancing, acquisition and recapitalization and will focus in healthcare areas such as skilled nursing, assisted living, senior housing, memory care and acute care facilities as well as specialty pharmacies. GEHF will offer asset-based revolving loans, mortgage financing, secured debt and capital for healthcare companies in transition.
Gervais, named CEO of Great Elm Healthcare Finance, brings more than 30 years of experience in the healthcare finance industry to the platform. Previously, Gervais founded Gemino Healthcare which was sold to Solar Senior Capital in 2013 and was a senior member of Healthcare Business Credit Corporation which was sold to CIT Group in 2005.
Zilke will be responsible for GEHF’s portfolio management. Prior to joining GEHF, Zilke co-founded the Crestmark healthcare financial services group and served as portfolio manager for the transportation lending group.
Kerr is responsible for GEHF’s underwriting of new business originations. Prior to GEHF, Kerr spent more than 17 years at Crestmark where he co-founded its healthcare financial services group.
“This is an exciting time to be launching a healthcare finance vehicle as we are seeing a significant number of healthcare investment opportunities,” Gervais said. “Additionally, I have known the Great Elm Specialty Finance team for over 20 years and believe we will build a great healthcare franchise.”
“We are thrilled to launch our healthcare platform with Berkadia as our partner and to welcome Mike Gervais as CEO of GEHF. Under Mike’s leadership, we are confident that we will build a world class healthcare group,” Matthew Kaplan, CEO of GECC, said.
