New York-based private equity firm Post Capital Partners is partnering with former Addus HomeCare Corporation (Nasdaq: ADUS) CEO Mark Heaney to search for — and invest in — home- and community-based care businesses.
“We see a growing need for home and group care in the community, as the number of older persons grows and life expectancy increases,” Mitch Davidson, co-founder and managing director of Post Capital Partners, said in a press release announcing the deal. “Mark has been a visionary and a leader in the delivery of high quality home care services to the elderly as well non-elderly. We are excited to partner with Mark in building a multi-disciplinary community-based model of care positioned for managed care and the inevitable shift to risk-based reimbursement.”
As a 35-year veteran of the home care industry, Heaney spent 31 years with Addus. Most recently, he served as CEO from 2008 to 2016. When he left the company, Addus was one of the country’s largest providers of Medicaid-funded home care, serving 35,000 consumers through 130 offices in 24 states with over 17,000 employees.
Heaney has long preached the importance of home- and community-based care within the health care continuum. In fact, in January, he penned a column for Home Health Care News advocating against the term “non-skilled care,” arguing that it disservices the value of personal home care and its workers.
Meanwhile, Heaney’s partnership with Post Capital is part of the firm’s “executive-first strategy,” in which it partners with executives before starting a search to better identify attractive investments.
In this case, the goal is to build a comprehensive system of community care services for consumers with changing needs, Heaney said in the release. Targets for the platform search include adult day centers, home care companies and community-based services companies.
Post Capital will target a platform that has a leading urban market position and look at a range of payment models, Davidson told PE Hub.
The firm’s sectors of interest include niche manufacturing, consumer products and health care services, with a focus on lower-middle-market companies with revenue of $10 million to $150 million and EBITDA of $2 million to $20 million, also according to PE Hub.
Heaney and Davidson were not immediately available to comment on the partnership.