Hcap Partners Successfully Exits Arosa Investment

HCAP Partners announced Tuesday that it successfully exited its investment in Arosa.

The private equity firm helped the in-home care company expand from a regional provider in four states to 38 locations across 13 states, including a new location in Kansas City to serve Kansas and Missouri residents.

“HCAP backed Arosa at its pivotal moment in 2018, supporting the formation of coast-to-coast care management and home care,” Arosa CEO Ari Medoff told Home Health Care News.

Hope Mago, partner at HCAP Partners, told HHCN that Medoff’s vision of providing a differentiated level of care to the senior population and creating a quality work environment for caregivers aligned with HCAP’s mission.

“We are focused not only on patient outcomes and providing access to care, but we also focus on creating a quality job environment through a framework called the Gainful Jobs Approach,” he said.

HCAP’s “Gainful Jobs Approach” focuses on increasing compensation, benefits and workplace support, which it reports helps with increased employee retention and client and employee satisfaction scores.

Based in San Diego, HCAP Partners provides mezzanine debt and private equity to lower-middle-market companies throughout the United States. Since its founding, the firm has invested in over 65 companies.

“From the beginning, HCAP and Arosa shared a deep commitment to improving job quality in an industry that urgently needed – and continues to need – this focus,” Medoff said. “As Arosa continues to grow and HCAP advances its mission of raising and deploying impact capital, this marks a natural inflection point and the conclusion of this phase of our partnership.”

Arosa will continue to build innovative models of care for older adults and elevate the job quality for the professionals who deliver this care, according to Medoff.

“The relationship has been excellent,” Mago said. “Our investment thesis followed a natural cycle of about five or six years, after which we planned to exit, and everything went as expected. If we have another opportunity to collaborate with Ari and the team, we will certainly consider it. Seniors deserve dignified care, and we are always searching for opportunities in the senior care sector.”

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