PE Firms Cimarron, Tacoma Holdings Recapitalize Frontpoint Health

The private equity firms Cimarron Healthcare Capital and Tacoma Holdings have recapitalized the home-based care provider Frontpoint Health. Financal terms were undisclosed.

Frontpoint provides home health, hospice, palliative and personal care with a focus on Medicare Advantage enrollees in Texas markets. The investors tapped former Evergreen Health executive Brent Korte to become CEO of the platform.

“I’m grateful for the trust of my new partners at Cimarron and Tacoma,” Korte said in a statement. “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.”

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Frontpoint will apply the influx of capital to fueling organic growth, acquisitions across its business lines, and foster greater synergy between its home health and hospice operations.

The company currently has three locations that operate under distinct brands. These include home health provider One Point Health Services and Dignity Hospice, both in Dallas. The third location is Houston-based Highland Hospice.

Frontpoint also anticipates growth through de novos, with eyes on the San Antonio, Houston, Austin, and Waco, Texas markets, Hospice News’ sister site Home Health Care News reported.

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Both of the private equity firms in this transaction focus on lower middle-market health care investments. These generally are companies with annual revenues ranging between $5 million and $100 million.

“We’re very optimistic about Frontpoint’s future behind a proven industry executive in Brent Korte,” Cimarron Managing Partner James Nadauld said in a press release. “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.”

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