Investment activity in home-based care may be picking up.
Zenyth Partners – a New York-based investment firm focused on growing health care companies from early-stage businesses into larger platforms – announced Thursday it has made an investment in LifeCare Home Health Family. Financial details around the investment were not disclosed.
Based in Irving, Texas, LifeCare is an in-home care provider that delivers home health and private-duty home care services across 10 affiliated branches. Its footprint includes locations in Texas, Florida and Nevada – with more states likely coming soon.
“We’re thrilled to partner with the Zenyth team, who we have known for over 5 years now,” Dean Alverson, CEO of LifeCare, said in a statement. “We’re proud of the success we’ve had to date and are excited at the prospect of what we can achieve with the resources and expertise that Zenyth brings to bear.”
Brentwood Capital Advisors and Holland & Knight served as financial and legal advisors, respectively, to LifeCare. Edgemont Partners and Alston & Bird served in the same roles for Zenyth.
As an investor, Zenyth already has some experience in the realm of home-based health care.
One of its portfolio companies is Helping Hands Family, which provides clinic-, home- and school-based applied behavior analysis and related services to children impacted by autism spectrum disorder. Zenyth has helped expand that business to more than two dozen markets in the Northeast and Mid-Atlantic U.S.
LifeCare stood out to Zenyth due to its management team, track record of same-store sales growth and commitment to clinical quality, according to the investment firm.
“Our partnership with LifeCare represents the realization of a years-long thesis in the post-acute care space,” Tim Abbot, principal of Zenyth, said in a statement. “We’re impressed by the differentiated clinical outcomes that LifeCare has been able to sustain and believe that, on that basis, the company is optimally positioned for continued success as the industry increasingly rewards sophisticated agencies that provide the highest-quality care and a superior patient experience.”
Following Zenyth’s investment, LifeCare Home Health Family plans to expand its geographic footprint and also add to its service lines.
Brands under the LifeCare umbrella include Haven Home Health, EverCare Health Services, Complete Home Care, Care First Home Health Care and Beyond Faith Home Care, according to the organization’s website.
Relative to historic highs in 2020 and 2021, investment activity across the home health and home care markets has been down over the past couple of years.
While that’s true, health care-savvy investors remain bullish on the at-home care value proposition.
“The underlying motivation to invest remains strong,” M&A advisory firm Mertz Taggart write in its Q1 dealmaking update. “Private equity and the public market institutional investors understand the value home health provides to the health care system as a whole. In today’s value-based care movement, many believe skilled home health remains key to reducing overall costs.”
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