Transaction Provides Capital to Support Growth for Frontpoint Health, a specialty Home Health and Hospice Platform
— James Nadauld, Managing Partner of Cimarron
SALT LAKE CITY, UTAH, UNITED STATES, October 5, 2022 /EINPresswire.com/ — Cimarron Healthcare Capital (“Cimarron”) and Tacoma Holdings (“Tacoma”), private equity firms focused on making investments into healthcare companies in the lower-middle market, today announced that they have recapitalized Frontpoint Health (“Frontpoint” or “the Company”) together in partnership with the Frontpoint management team and other investors. Frontpoint is a leading home health and hospice platform focused primarily on servicing Medicare Advantage patients in the Texas market. Financial terms of the private transaction were not disclosed.
Cimarron and Tacoma tapped former Evergreen Health Executive, Brent Korte, to lead the platform as CEO following the transaction. Korte has a strong track record of success and is highly reputed in the home care space. A board of industry experts has also been assembled to support Korte.
“I’m grateful for the trust of my new partners at Cimarron and Tacoma,” said Brent Korte, “and I’m excited to begin building a differentiated platform focused on connecting the economies of scale of larger platforms with the benefits of local agencies, to thrive as a low-cost provider and to target the growing Medicare Advantage market.”
The investment will be used to support organic growth, drive synergy opportunities between the Company’s home health and hospice businesses, and to complete strategic acquisitions, all in response to significant demand from the Medicare Advantage market.
“We’re very optimistic about Frontpoint’s future behind a proven industry executive in Brent Korte,” said James Nadauld, Managing Partner of Cimarron. “Cimarron’s active investment thesis in post-acute care, coupled with its long-standing relationship with Tacoma, positions us to be value-added partners to Brent and his team.”
“As Medicare Advantage continues to be the future of Senior Care, we’re confident in Frontpoint’s differentiated business model and executive leadership team to execute on this significant opportunity,” said Nick Smith, Principal at Cimarron.
“Frontpoint can depend on its capital partners for support given the alignment between Cimarron and Tacoma, the high-quality board of directors we’ve assembled, and the decades of collective healthcare expertise around the table,” said Matt Komenda, Managing Partner and Founder at Tacoma Holdings.
Home Health plays to some of the largest structural trends within healthcare: aging demographics, increased prevalence of chronic diseases, intense focus on lowest-cost venues of care, and long-term shift towards value-based care. Hospice and personal care services (PCS) continue to ride favorable economic and demographic tailwinds and are logical extensions of the core home healthcare business model.
Cimarron Healthcare Capital is a Salt Lake City-based private equity firm focused exclusively on healthcare investments in the lower middle-market. Cimarron’s experienced investment team and industry domain expertise aligns its investment strategy with its portfolio companies’ growth and expansion needs, creating an ecosystem designed to maximize value. For more information, please visit: www.cimarronhc.com.
Founded in 2020, Tacoma Holdings is a private equity firm focused on founder-built healthcare companies in high-growth markets. Tacoma pursues a hyper-thematic and operationally intensive approach to its investments and surrounds its companies with a team of world-class operators at the board of director level. For more information, please visit: www.tacomaholdings.com.
About Frontpoint Health
Frontpoint Health is a leading healthcare services company focused on providing the continuum of care in the home to the senior population. Through close integration with its health system and health plan partners, Frontpoint delivers superior patient health outcomes while minimizing total spend to the healthcare system. Frontpoint is one of largest and fastest-growing home health and hospice companies in the United States. For more information, please visit: www.frontpointhealthcare.com.
Cimarron Healthcare Capital
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