Blue Wolf Capital exits DME benefit management company StateServ, Bain leads $150m investment in newly formed Medicare Advantage platform

WindRose buys StateServ while Bain Capital Insurance launches Enhance Health.

Happy Friday!

WindRose Health Investors has agreed to acquire StateServ, a leading provider of DME (durable medical equipment) benefit management services to the hospice industry, PE Hub has learned. The seller is Blue Wolf Capital Partners.

The transaction for the Tempe, Arizona-headquartered business commanded a total enterprise value of close to $440 million, according to people familiar with the pending deal.

Although various strategic buyers have been around StateServ over the years – and a strategic player is viewed as the logical next owner of the business – this was a largely sponsor-driven process, sources said.
StateServ’s outcome is emblematic of the nimbleness of private equity in today’s market. “Even in a world where strategics can pay up and generate synergies, the ability to run quickly and put capital to work” is “to the benefit” of the sponsors, one person said.

StateServ also adds to a busy year for New York’s WindRose, which in a September Form D filing disclosed a $1.15 billion target for Fund VI.

Earlier this week, the healthcare-focused private equity firm announced a separate new platform investment in Workplace Options, supporting the next generation of employee assistant programs as wellness and mental health are increasingly valued by employers.

Read my full report on PE Hub.

Entrepreneurial: Bain Capital Insurance has arrived with its debut investment.

The firm has partnered with veteran industry executives Matt Herman, Gary Jenkins, and Michael Lagalante to launch a new tech-enabled, digital health insurance brokerage and care navigation platform focused on serving the large and growing Medicare Advantage market. Bain is committing a $150 million investment with the launch of the new platform, which is called Enhance Health.

Besides helping seniors navigate their Medicare Advantage options, CEO Herman – the former CEO of Health Benefits Group — told Wall Street Journal that the company will also help clients who have chosen a plan to obtain benefits when they need services from healthcare providers. It aims to reach run-rate revenue of $100 million in the coming 12 months, with an initial focus on serving South Florida, Herman told WSJ.

This isn’t Bain’s first foray starting and building a business from scratch in the insurance front.

In the last year, it unveiled its planned acquisition of LV=, the second largest mutual life insurer in the UK; launched Keystone Agency Partners, a company that acquires and grows U.S. property & casualty insurance agencies; and formed a long-term strategic partnership with Beat Capital Partners, which invests in specialty insurance distribution start-ups.

Read PE Hub’s brief for more on Enhance Health.

That’s it for me! Have a great weekend, hubsters! As always, write to me at with any tips, gossip or feedback.