Pharos Capital Makes Majority Investment in Charter Health Care Group
Private equity firm Pharos Capital Group has made a majority investment in Charter Health Care Group, a California-based provider of post-acute care services, including hospice and home health care. The transaction serves as the launching pad for Pharos’ post-acute care platform moving forward.
Terms of the transaction were not disclosed.
With headquarters in both Dallas and Nashville, Tennessee, Pharos has invested in more than 50 companies since launching. The firm currently has more than $785 million of private equity assets under management. Its investments are often directed toward growing, middle-market companies seeking later-stage funding for internal growth, acquisitions, leveraged buyouts or recapitalizations across health care sectors.
Pharos typically makes investments in the $25 million to $50 million range.
Charter Health Care Group provides home-based care to more than 1,000 patients across parts of southern California, including San Bernardino, Riverside, Los Angeles, Ventura and Orange counties. In addition to home health and hospice care, Charter also offers transitional care services.
The PE firm’s majority investment into Charter “forms the basis for Pharos’s post-acute care platform,” according to the company. Moving forward, Pharos plans to focus on building and acquiring high-quality hospice and home health companies that manage health care needs across the post-acute care continuum.
“We are excited to establish a platform in the rapidly growing post-acute care segment of the health care industry,” Bob Crants, founding partner of Pharos, said in a statement. “Charter has built a strong model that will lead the industry toward better solutions for patients, families, and caregivers as end-of-life and home health services are increasingly important to patient care.”
Steve J. Larkin will serve as Charter’s CEO. Larkin previously served as division president for Compassus, a nationwide network of community-based hospice, home health and palliative care services.
Charter founders Fred Frank and Sabina Del Rosario will assume the positions of president and COO.
“The operational expertise and financial resources Pharos brings will allow us to continue to refine our model while expanding our collaborative efforts with local communities and health care providers,” Frank, formerly the CEO of Charter, said in a statement.
The Charter move marks the 10th platform portfolio investment from Pharos III and III-A, health care-focused private equity sister funds. Other recent Pharos investments include Behavior Care Specialists, a provider of autism spectrum disorder services, and Verdi Oncology, an oncology practice and clinical research management company.
Celtic Hospice & Home Health Rebrands
Celtic Hospice & Home Health has rebranded under the Residential Home Health and Hospice name.
Mechanicsburg, Pennsylvania-based Celtic Hospice & Home Health provides skilled home health care and hospice services across eastern Pennsylvania. Celtic and Residential have been working collaboratively as subsidiaries of Graham Healthcare Group.
Graham Healthcare Group is a subsidiary of Graham Holdings Company (NYSE: GHC). The companies that make up Graham Healthcare Group include Residential Healthcare Group, Allegheny Health Network-Healthcare @ Home and Mary Free Bed at Home.
“Combining our talent and resources under the Residential name solidifies our shared mission to put our patients first and enhances our ability to provide the best care and support for our patients and their families,” Melanie Mayer, director of business development and sales for Celtic, said in a statement.
The Pennsylvania branches of Residential Home Health and Hospice will continue to offer home health, hospice and palliative care provided by the same clinicians. Expanded programming and specialty therapies, offered by other Residential branches, are in progress in its coverage region.
Written by Robert Holly