Inspired Healthcare Capital Fund Non-Traded REITs

Kurta Law is continuing to investigate investor complaints involving Inspired Healthcare Capital Fund, a non-traded REIT. In August 2025, the Fund announced that it was suspending dividend payouts to investors. The company also told Senior Housing News it would be undergoing a third-party financial review and winding down its senior living management operations. These actions occurred against the backdrop of an ongoing SEC review. In communications to financial advisors, Inspired Healthcare Capital acknowledged that it was under regulatory scrutiny and stated that it was working with financial institutions to explore “strategic alternatives.” 

Our attorneys have experience representing investors who lost money on risky non-traded REITs. If your broker failed to inform you of the risks associated with this type of investment, you may have a case for a securities fraud attorney.

What is the Inspired Healthcare Capital Fund?

Inspired Healthcare Capital is a private equity firm that operated Volante Senior Living, a platform that managed a portfolio of 20-plus senior living properties. These properties have been transferred to a new operator. In June of 2025, Inspired Healthcare Capital announced it would begin restructuring.  It also abruptly suspended all new investment offerings and stopped making distributions to existing investors.

What Are Non-Traded REITs and Why Do They Lose Money?

Real Estate Investment Trusts are companies that invest in income-producing real estate. Investors may want to buy shares of REITs if they are looking for stable income in retirement – brokers often advertise that REITs are required to pay out 90% of taxable income to shareholders.

These investments can be risky, depending on the type of property the REIT selects. And non-Traded REITs are always high risk because of the illiquid nature of the investments. Investors may not want to invest in non-traded REITs because they cannot immediately cash out if they need money on short notice. To get money out, investors may have to pay more fees and then wait for a protracted period. These types of REITs are not publicly traded, which means that many potentially worrisome details would not be available for the investor to evaluate. Non-traded REITs can also come with especially high fees that brokers should disclose to potential investors.

Did Your Broker Violate Securities Industry Rules?

Brokers who recommended shares of this non-traded REIT should have abided by securities rules and regulations, including Regulation Best Interest. Regulation Best Interest expands on the requirements of the Suitability Rule, which states that brokers must only recommend investments that suit their investors’ needs, including their risk tolerance and liquidity needs. Regulation Best Interest also imposes a Duty to Disclose, which requires that broker-dealer representatives make investors aware of any conflicts of interest, including commissions.

Investors may have encountered advertisements for Inspired Healthcare Capital Fund at free seminars. These seminars often come with a meal and a presentation by brokers who are eager to earn commissions from sales of risky investment shares. This REIT reportedly offered commissions as high as 8%.

Below is a compilation of funds, income vehicles, DSTs, and related offerings publicly associated with IHC.

Primary & Income / Liquidity Funds

• Inspired Healthcare Capital Fund LP
• Inspired Healthcare Capital Income Fund LLC
• Inspired Healthcare Capital Income Fund 2 LLC
• Inspired Healthcare Capital Income Fund 3 LLC
• Inspired Healthcare Capital Income Fund 5 LLC
• Inspired Healthcare Capital Income Fund 5 Notes, LLC
• Inspired Healthcare Capital Liquidity Fund, LLC
• IHC Security Income Fund LLC

Delaware Statutory Trusts (DSTs) / Senior Living Projects

These offerings were structured as DSTs tied to IHC’s senior housing platform:

• IHC – Ashbrook DST
• IHC – Candle Light Cove DST
• IHC – Peachtree DST
• Inspired Senior Living of Appleton DST
• Inspired Senior Living of Arlington Heights DST
• Inspired Senior Living of Athens DST
• Inspired Senior Living of Augusta DST
• Inspired Senior Living of Beaverton DST
• Inspired Senior Living of Brookhaven DST
• Inspired Senior Living of Carson Valley DST
• Inspired Senior Living of Chesterfield DST
• Inspired Senior Living of Cinnaminson DST
• Inspired Senior Living of Creswell Development, LLC
• Inspired Senior Living of Dartmouth DST
• Inspired Senior Living of Delray Beach DST
• Inspired Senior Living of Dunedin DST
• Inspired Senior Living of Eatonton DST
• Inspired Senior Living of Eugene DST
• Inspired Senior Living of Fort Myers DST
• Inspired Senior Living of Grapevine DST
• Inspired Senior Living of Hamilton DST (New Jersey property)
• Inspired Senior Living of Lake Orion DST
• Inspired Senior Living of Largo DST
• Inspired Senior Living of Las Vegas DST
• Inspired Senior Living of Melbourne DST
• Inspired Senior Living of Mequon DST
• Inspired Senior Living of Naperville DST
• Inspired Senior Living of New Braunfels DST
• Inspired Senior Living of North Haven DST
• Inspired Senior Living of Pinellas Park DST
• Inspired Senior Living of Reno DST
• Inspired Senior Living of Round Rock DST
• Inspired Senior Living of San Marcos DST
• Inspired Senior Living of St. Petersburg DST
• Inspired Senior Living of Winery Lane Development, LLC

Kurta Law Can Help

Non-Traded REIT attorneys at Kurta Law have significant experience recovering losses for investors. Our attorneys represent investors as they navigate the FINRA arbitration process, which investors typically pursue instead of suing in civil court. The securities industry is its own complex area of law, and investors can benefit from the niche expertise of Kurta Law securities fraud attorneys. Contact us today for a free case evaluation: Call (877) 600-0098 or email info@kurtalawfirm.com.