Epilog Partners snaps up Care Connectors Medical Group

Epilog Partners, a private equity platform specialising in healthcare investments, has announced a significant acquisition of Care Connectors Medical Group. This majority recapitalization deal includes substantial rollover investments from the company’s founders and co-investment from HealthQuest Capital, Echo Health Ventures, and Blue Venture Fund. The terms of the recapitalization were not disclosed.

Headquartered in Newport Beach, California, Care Connectors Medical Group is a prominent player in value-based care enablement. The company partners with health plans and risk-bearing providers to enhance prospective risk adjustment, quality improvement, and care coordination. Offering both in-home (in-person and virtual) and community-based solutions (including primary care and mobile clinics), Care Connectors is at the forefront of delivering tailored healthcare services.

Strategic Partnership and Future Growth

Nilay Shah, Co-founder and Chief Executive Officer of Care Connectors Medical Group, highlighted the significance of the partnership with Epilog Partners. Shah noted that Care Connectors leverages its experiences and AI-enabled software platform to deliver solutions that address unique customer needs. Shah expressed enthusiasm about the partnership, citing Epilog Partners’ successful track record with high-growth companies in the value-based care sector and their understanding of the company-building journey.

Chris Price, Founder and Managing Partner at Epilog Partners, emphasised Care Connectors’ ability to engage challenging and non-compliant patients. Price pointed out that the company’s role as an extension of primary care physicians and health plans is increasingly crucial for achieving optimal outcomes in a changing regulatory and care delivery environment. He expressed excitement about working with Care Connectors and the valuable contributions of the co-investors.

Kyle Gay, Principal at Epilog Partners, noted that Care Connectors represents the firm’s third platform investment and reflects their commitment to investing in tech-enabled payer and provider services. Gay highlighted Epilog’s ongoing investments in CareMetx, a leading biopharma hub services company, and the successful exit from ReCept, a specialty pharmacy managed services company, to Omnicell.

Transaction Details and Advisors

The acquisition involved several key advisory firms. Gibson, Dunn & Crutcher and Holland & Knight represented Epilog Partners in the transaction, while BMO Sponsor Finance led the financing. Care Connectors Medical Group was advised by Bailey & Company and Sheppard Mullin.

Care Connectors Medical Group, founded in 2018 by Nilay Shah, Dr. Vinod Kannarkat, and Andrew Lam, has established itself as a leading force in value-based care. The company’s focus on managing risk adjustment, quality improvement, and care coordination is vital for health plans and risk-bearing providers. Epilog Partners, with a focus on tech-enabled services and software, continues to expand its portfolio, leveraging a research-centric, thesis-driven approach to guide its investment strategy.