BrightStar Care was just lately acquired by an affiliate of Peak Rock Capital by means of a partnership with founder Shelly Solar Berkowitz.
BrightStar is without doubt one of the largest suppliers of at-home care in the USA, with a franchise community of greater than 400 areas. The corporate additionally has a senior residing arm, BrightStar Senior Residing, which in 2022 launched a small dwelling mannequin beneath the banner of BrightStar Care Properties.
The transaction with Peak Rock will allow accelerated progress, however within the near-term, that progress is more likely to be targeted extra on the at-home care enterprise reasonably than the senior residing enterprise, she advised Senior Housing Information’ sister publication, House Well being Care Information, final week.
That’s as a result of development financing and constructing prices nonetheless stay prohibitively excessive, and there is also uncertainty across the impact of tariffs and different public coverage strikes. Sure tasks nonetheless make sense, often when a franchisee already has land and solely must finance the development of a care dwelling, however care dwelling progress has been measured.
Nonetheless, Solar Berkowitz stated she hopes that situations turn into extra favorable within the subsequent two or three years, which is able to allow extra aggressive progress within the senior residing enterprise.
A lot thought went into the transaction with Peak Rock, given BrightStar’s lengthy historical past of serving older adults in a number of settings since 2002, Solar Berkowitz stated.
Following the transaction, Solar Berkowitz will stay a serious shareholder and retain the flexibility to be an “lively participant” in BrightStar’s future by means of her place on the board. She declined to share monetary particulars of the transaction.
“I actually felt like I had the dedication to the investments vital and the collaboration within the boardroom with Peak Rock to have the ability to do this,” Solar Berkowitz stated. “We consider that is the fitting accomplice, and we’re very supportive of the choice.”
Peak Rock Capital, a non-public fairness firm, has fairness and debt investments within the U.S. and Europe with earlier well being care investments together with infusion and pharmacy supplier Paragon Healthcare. The agency bought Paragon in 2024 to Elevance Well being (NYSE: ELV).
“I received very snug with personal fairness and well being care, figuring out that I had a seat on the desk and figuring out that they had been keen to make the investments to speed up a number of the issues that I see as essential to our strategic imaginative and prescient and to our stakeholders,” Solar Berkowitz stated.
One of many issues that Solar Berkowitz stated led to the transaction with Peak Rock was the group’s previous administration of Paragon, noting there may be “nice alignment” on supporting BrightStar’s employees whereas “taking measured strides in new progress.”
When requested what may change for the corporate’s many franchise areas, Solar Berkowitz stated “most every little thing” wouldn’t change following the acquisition by Peak Rock, noting that she’d spent the final two years being clear with franchisees about her intentions to promote BrightStar.
Within the subsequent two to a few years, Solar Berkowitz stated, BrightStar will proceed to put money into new know-how to enhance retention, drive recruitment and scale back turnover, whereas additionally enhancing advertising spending.
BrightStar’s Joint Fee-accredited continuum of care can also be not altering, whereas all plans for added help to BrightStar franchisees will proceed, she stated.
“I feel what’s actually thrilling for our present franchisees, and the franchisees which might be excited about which model to hitch, we completely can be fulfilling our management place within the business in an accelerated method due to the investments that we all know Peak Rock is aligned to make,” Solar Berkowitz stated.
