SkyKnight Capital Invests in Home Healthcare Leader AeroCare

October 21, 2019 08:00 AM Eastern Daylight Time

SAN FRANCISCO--(BUSINESS WIRE)--SkyKnight Capital (“SkyKnight”), a San Francisco based private equity firm, announced that it has made an investment into AeroCare Holdings, Inc. (“AeroCare” or the “Company”), a leading provider of home healthcare solutions focused on patients with chronic respiratory conditions. AeroCare management and existing shareholders, including Peloton Equity, SV Health Investors, and Morgan Stanley Investment Management’s AIP Private Markets, will remain invested as part of the transaction.

Founded in 2000 by CEO Steve Griggs, AeroCare has established itself as one of the nation’s leading home health distribution platforms, focused on providing the highest quality service and equipment to patients with chronic respiratory conditions. With an extensive network of over 260 locations across the United States, AeroCare’s team of healthcare professionals provides service to over 500,000 patients and partners with over 45,000 physicians annually. Since inception, the Company has achieved 18+ years of consecutive revenue growth, driven by a combination of consistent organic growth and targeted acquisitions. SkyKnight’s investment will support AeroCare’s next stage of growth and continued focus on M&A. AeroCare will continue to be led by CEO Steve Griggs.

“We are very excited to partner with SkyKnight as AeroCare continues to leverage its best-in-class platform to provide quality care for a large and increasingly complex patient population,” said Mr. Griggs. “Since founding the Company, we have always strived to build a scalable, highly efficient, and technology-enabled platform that can drive better service to both patients and physicians. SkyKnight’s partnership and support will enable AeroCare to continue executing against this vision and will help us unlock continued organic growth and acquisition capacity for years to come.”

SkyKnight Managing Partner Matthew Ebbel said, “AeroCare is a clear leader within a critically important and growing area of home healthcare. We believe the AeroCare management team is truly exceptional, with an impressive track record of robust growth and a steadfast commitment to the highest quality patient care. We are thrilled to partner with the AeroCare team and its existing shareholders to support and accelerate the Company’s growth.” SkyKnight Principal Jordan Milich added, “We are delighted to support the AeroCare management team as they continue to execute on their buy and build strategy in a marketplace that remains highly fragmented. With technology at the core of its offering, AeroCare is well-positioned to provide quality last-mile care to its patients and poised to pursue transformational growth initiatives in the coming years.”

Ted Lundberg, a Founding Partner of Peloton Equity, said, “We are very pleased to continue our relationship with the AeroCare team, and look forward to working with SkyKnight as a value-added partner to help execute on the next phase of growth. Together with management and SkyKnight, we believe AeroCare remains well-positioned for continued success.” Nash Waterman, co-head of the secondaries group at AIP Private Markets added, “We have valued our partnership with Peloton and the AeroCare team over the last few years and are excited to support this partnership going forward.”

Tom Flynn, Managing Partner of SV Health Investors, added, “AeroCare has been at the forefront of the industry’s transition to technology-enabled workflows that drive operational efficiency, better patient care, and an electronic connection with physicians and patients. This transaction supports the Company’s ability to press this advantage as more and more healthcare moves to the home.”

The AeroCare investment will be the sixth investment from SkyKnight Capital Fund II and Annex. SkyKnight was advised by Holland & Knight, Ropes & Gray, and Deloitte. AeroCare was advised by TripleTree, Goodwin Procter, and Brown & Fortunato. SunTrust, J.P. Morgan, Capital One, Fifth Third Bank, and Regions, among others, provided debt financing.

About AeroCare

AeroCare is one of the nation's leading providers of oxygen, respiratory, sleep, and other chronic therapy services to patients in the home. AeroCare's patients typically suffer from chronic obstructive pulmonary disease (COPD), obstructive sleep apnea (OSA), or congestive heart failure (CHF) and require in-home therapy services. Based in Orlando, Florida, AeroCare serves over 500,000 patients annually through its national network, which includes over 260 locations across the United States.

About SkyKnight Capital

Founded in 2015, SkyKnight manages over $850 million in assets across its funds and co-investment vehicles on behalf of institutional family offices and leading foundations and endowments. SkyKnight focuses on building long-term partnerships with high-quality businesses in acyclical growth sectors alongside exceptional management teams. SkyKnight makes equity investments ranging from $20 million to over $200 million. More information is available at www.skyknightcapital.com.

About Peloton Equity

Founded in 2014, Peloton Equity (www.pelotonequity.com) is a Connecticut based private equity firm focused exclusively on growth capital investments in the healthcare industry. Peloton is the successor firm to Ferrer Freeman & Company (“FFC”), and the team has over 60 years of combined healthcare investing experience, including investments in companies across many major healthcare subsectors. Peloton seeks companies with between $20 and $200 million of revenue and the management team, market opportunity, and business model to grow revenues meaningfully over the life of its investment. While at FFC and Peloton, the Peloton investment team has been responsible for over 30 portfolio company investments across the healthcare industry, representing over $735 million of invested capital, of which 14 have been realized through company sales, and five have been realized through IPOs. Recent investments include AeroSafe Global, Arcadia Solutions, ClearSky Health, HPOne, and ID Experts.

About SV Health Investors

SV Health Investors, formerly named SV Life Sciences, is a healthcare and life sciences venture capital and growth equity firm. SV targets growth equity investments in healthcare services and digital health; early-stage and revenue-stage opportunities in medical devices; and early-stage opportunities in biotechnology. Over the past 25 years, SV has invested in more than 175 companies. The firm currently has over $2 billion assets under management across nine private capital funds and one publicly listed fund. SV Health Investors has offices in Boston and London. For more information, please visit www.svhealthinvestors.com.

About AIP Private Markets

AIP Private Markets, an investment team within Morgan Stanley Investment Management, seeks to deliver innovative private markets solutions to a global client base. Its built-for-purpose team of 50 dedicated professionals draws on decades of investment experience across the breadth of private markets—including growth, buyouts, venture capital, credit, and real assets. The team focuses on structurally compelling opportunities within less efficient markets and has committed over $18 billion across more than 800 investments globally through June 30, 2019.

Contacts

SkyKnight Capital

Mara Hunt

mara@skyknightcapital.com