Erez Law is currently investigating brokers nationwide who recommended their clients invest in the Inspired Healthcare Capital Fund. Many investors across the United States trusted the recommendations of their investment advisors and believed they were investing in a sound, trusted healthcare investment. It is alleged that financial advisors and brokers recommended this unsuitable investment to investors as an income-producing investment. It is also alleged that brokers misrepresented the tremendous risks associated with investing in the private placement.
At Erez Law, we focus on helping investors like you recover losses from brokerage firms. Our investment fraud lawyers are investigating whether brokers and investment advisors failed to conduct adequate due diligence related to investments in the Inspired Healthcare Capital Fund before recommending it to investors.
With a track record of recovering over $200 million from brokerage firms for our clients, Erez Law stands ready to fight for your rights. We have represented over 1,000 clients and bring a wealth of knowledge and successful strategies to the table. Contact us for a free initial consultation to learn how we can help with your investment losses from conservation easements.
What is the Inspired Healthcare Capital Fund?
Inspired Healthcare Capital is a Scottsdale, Arizona-based private equity firm that specializes in acquiring and managing senior-living and healthcare facilities. The private equity firm launched private placements that are sold primarily through independent broker-dealers, offering high commission rates surpassing 8%. The company is also a sponsor of real estate-based investments, including Delaware Statutory Trusts (DSTs).
Investments in Regulation D private placements carry risks, including high fees and other potential dangers, such as upfront commissions, speculative returns, illiquidity, and limited to no transparency regarding public reporting. Therefore, private placements, such as the Inspired Healthcare Capital Fund, are unsuitable for many investors, including conservative investors, retirees, and those seeking income-producing investments.
Investments in private placements and DSTs are often considered speculative, illiquid, and high-risk. The investments have become worthless to their investors, and they cannot be sold in any open market.
Inspired Healthcare Capital launched the Inspired Healthcare Capital Fund in 2020 and sought to raise $30 million. Similar to other private placements, the Inspired Healthcare Capital Fund was high-risk and offered minimal protection for investors compared to other similar publicly traded securities. There are also other risk factors associated with these investments, including conflicts of interest, limited oversight with fewer disclosure requirements, and lengthy lock periods that can restrict investors’ access to their funds.
It is alleged that brokers and investment advisors recommended Inspired Healthcare Capital as a safe investment that produced monthly distributions, an appealing strategy for retirees and other investors. Many investors in the fund relied on the distributions to supplement their income or cover expenses during their retirement years.
Regrettably, it is also reported that retirees, who had irreplaceable retirement savings, are now facing significant financial consequences due to investments in the Inspired Healthcare Capital Fund.
Inspired Healthcare Capital Investment Offerings
Inspired Healthcare Capital has offered the following investments:
- IHC – Ashbrook DST
- IHC – Candle Light Cove DST
- IHC – Peachtree DST
- IHC Security Income Fund LLC
- Inspired Healthcare Capital Fund LP
- 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 Income Fund LLC
- Inspired Healthcare Capital Liquidity Fund, LLC
- 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 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
- 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
Recent News and Updates: Inspired Healthcare Capital Fund
In July 2025, the U.S. Securities and Exchange Commission (SEC) initiated an investigation into Inspired Healthcare Capital Fund. That same month, Inspired Healthcare Capital Fund wound down Volante Senior Living operations, the senior living operator, following a regulatory review by the SEC. Residents and their families were outraged at the unexpected closure. Volante Senior Living transitioned its communities to a third-party operator, Leisure Care.
The company ceased new offerings, suspended distributions, and did not pay dividends in August or September 2025. Additionally, it is uncertain whether or when distributions will ever resume.
Investors now face a lack of liquidity, which forces them to keep their investments despite the company’s economic uncertainties.
In September 2025, the IHC Leadership Team sent a letter to investors informing them that, “We regret to inform you that no distributions will be made at this time on either September 15th or September 20th.” The company stated that distributions would continue to accrue on the books. However, the company did not outline a plan or timeline for resuming distributions. Investors also risk losing their initial investment principal. Inspired Healthcare Capital has announced that it has engaged outside advisors to evaluate its options, but it has not communicated a resolution to investors.
In September 2025, Emerson Equity Bridge Fund I, LLC, filed a lawsuit against Inspired Healthcare Capital and its chief executive officer (CEO), alleging breach of contract and fraud related to a $1.5 million loan. The complaint alleges that, in December 2024, Inspired Healthcare Capital and its CEO made material misrepresentations to secure a loan from Emerson Equity Bridge Fund I, LLC. The complaint alleges that, while the CEO guaranteed repayment, he failed to disclose personal guarantees totaling $200 million. The company demanded repayment of principal plus interest by September 1, 2025, but Inspired Healthcare Capital neglected to make a payment on this loan. Additionally, the complaint alleges that the company was already in financial distress when Emerson Equity Bridge Fund I, LLC issued the loan. Emerson Equity Bridge Fund I, LLC alleges fraudulent conduct by Inspired Healthcare Capital and its CEO, seeking repayment of the loan, as well as damages.
Public records indicate that the company may be considering liquidating its properties, restructuring its debt, selling assets, and exploring mergers to achieve solvency.
How to Recover Investment Losses in the Inspired Healthcare Capital Fund
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, brokerage firms across the country may be liable for investment or other losses suffered by their customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations, and institutions in claims against brokerage firms, banks, and insurance companies on a contingency fee basis.