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DW Healthcare, Linden quietly back Public Partnerships

Sarah Pringle
Aug 8, 2022
Illustration of a doormat with a red cross outside a front door.
Illustration: Gabriella Turrisi/Axios

Public Partnerships (PPL), an enabler of self-directed in-home care, quietly garnered an investment from DW Healthcare Partners and Linden Capital Partners, Axios has learned.

Behind the scenes: Few details are known about the transaction, which has yet to be announced, but on Linden's end, sources say the investment was made through its structured capital vehicle.

Catch up fast: The joint investment follows a Covington Associates-run sale process that kicked off several months ago, targeting private equity, Axios wrote previously.

  • Per the April report, PPL marketed close to $30 million of EBITDA, but one source cited actual EBITDA of closer to $20 million.

Yes, and: Linden operating partner and veteran health care executive Miki Kapoor announced earlier this week on LinkedIn that he had joined the PPL board as a director.

How it works: PPL, a subsidiary of Boston management consulting firm Public Consulting Group, acts as the technology backbone for self-directed in-home care.

  • It facilitates and manages the various back-end functions to compensate caregivers of patients with disabilities or chronic illnesses that are eligible for public Medicaid assistance. (It doesn't actually employ caregivers, or provide care.)
  • The company says that it is the largest fiscal intermediary for self-directed home care services, providing more than 50 programs in 21 states.

Between the lines: Caregiving is often provided by family members or friends, and that can lend to financial or emotional stress — particularly if those caregivers are forced to step away from paid jobs. Programs like those offered by PPL enter as a solution.

  • Self-directed in-home care is an alternative to the typical home care agency model, through which an individual is matched with a third-party caregiver. In contrast, the former lets individuals choose who provides care for them.
  • It also reduces the likelihood of expensive, long-term institutional care.

What they said: The benefits of this program are two-fold for those states that like the model: "The states like the program because, one, there's a need for it, and two, there's a job creation opportunity," one source told Sarah in April.

Of note: DW Healthcare and Linden are old friends.

  • The pair of firms jointly invested into HydraFacial in December 2016, and took the beauty-health company public in late 2020 through a $1.1 billion SPAC deal.
  • In 2012, DW Healthcare bought Z-Medica, selling majority control of the hemostatic products company to Linden in 2017. The pair ultimately exited their investments in full through the 2020 sale to Teleflex.

DW Healthcare and Linden declined to comment, while PPL's parent company could not immediately be reached.

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