Post Capital, ex-Addus chief join in new home-care platform

  • Heaney was exec at Addus for ~31 years, left in ’16
  • Firm eyes platforms with $2 mln to $20 mln Ebitda
  • Post was expected to score 6.5x on partial exit of Invo

Getting behind healthcare’s continued shift to home-based care, Post Capital Partners teamed up with industry veteran Mark Heaney to source and invest in a platform in the non-medical, adult daycare and home-care sector.

The partnership is part of the New York firm’s “executive-first strategy,” through which it partners with executives before proactively searching for and identifying attractive target platforms.

More specifically, the new partnership will target a platform that has a leading position in an urban market, with a large, stable patient population and referral sources, said Mitch Davidson, Post co-founder and managing director.

Areas of interest are widespread across the home care sector. The firm will evaluate opportunities in segments including adult day health centers, Medicaid personal care, private pay care management, home health and hospice, pediatric home health, behavioral health, medical transportation and meal-kit home-delivery services, Davidson said.

From a payer standpoint, Post will look at a range of models, including those reimbursed by Medicaid, Medicare, Medicare Advantage, managed care organizations, long-term care insurers, commercial insurers, Veterans Administration and private pay, the investor added.

Heaney, with more than 35 years of experience in the home-care-services industry, most recently led Nasdaq-listed Addus HomeCare as chairman, president and CEO. The executive first joined the company in 1985 as COO and took the helm as chief executive in 2008.

When Heaney departed Addus in 2016, the company was one of the largest providers of Medicaid-funded home-based-care companies in the U.S. When he left, the company had 130 offices across 24 states, with more than 17,000 employees.

Heaney has also been active in state and federal Medicaid policy in the home and community-based-care market.

He has served on industry association boards including the National Association of Homecare and the Home Care Aide Association of America. He was also a founding member of the precursor to the Partnership for Medicaid Home-Based Care.

Post invests in lower-middle-market companies with revenue of $10 million to $150 million and Ebitda of $2 million to $20 million. Sectors include healthcare services, niche manufacturing and consumer products. Post Capital will take minority or majority control.

Post’s other investments in healthcare include Invo Healthcare Associates, which provides therapy to children with special needs and autism spectrum disorder.

Wicks Groups of Cos recapitalized Invo in December 2016, with Post staying on as a minority investor.

The firm was expected to make about 6.5x its money with the partial exit, Buyouts previously reported.

Action Item: Contact Post at +1 212-888-5700

Update: This story was updated to include more information on the partnership’s strategy.