The Broker-Dealer Corner: Inspired Healthcare Capital

On February 2, 2026, Inspired Healthcare Capital (IHC) and 160 affiliated entities filed for Chapter 11 bankruptcy protection in the Northern District of Texas. In connection with this filing, distributions were halted in mid-2025. The estimated exposure in the market is approximately $1.2 billion. Brokerage firms have seen an uptick in FINRA arbitration claims being filed related to IHC and we believe that this is only the beginning. When there’s blood in the water, everyone’s a shark. As we have seen from the thousands of claims filed related to GWG L Bonds, investors are being contacted and influenced to file claims against their advisors if they invested in IHC.

IHC’s operations were robust and expansive, spanning 33 operating senior-living facilities across 14 states, housing approximately 2,620 residents. To help facilitate this expansion, IHC utilized two primary fundraising channels: DST Offerings and Investment Funds. DST Offerings targeted at investors (approx. 2,300 investors) seeking Section 1031 Tax Exchanges. Investment Funds raised over $390 million from approx. 3,300 investors through the sale of promissory notes and equity securities.

Investors who elected to invest in IHC did so willingly and with the expectation of profitable distributions and appreciation. However, like any investment, there is no guarantee of income and profit. Often times we have seen investors demand that their advisors invest in IHC in order to save on the tax consequences through a 1031 tax exchange. Those same investors are now being prompted by “investors rights” firms to file claims against their advisor as a result of the IHC bankruptcy filing.

If you are an advisor or broker-dealer that has exposure in IHC, please contact us immediately. Our firm has been able to come to a successful resolution for several of our clients, but the timing is key. As we are in the early stages of bankruptcy it is imperative to contact your attorney and plan ahead.