Investment Firm Firmament Backs Family Tree Private Care

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Investment Firm Firmament Backs Family Tree Private Care

Firmament — a New York-based investment management firm — has invested in Family Tree Private Care.

“It was a debt investment, so the business is still owned 50/50 by [CEO] Alex Bonetti and myself,” Daniel Gottschalk, president of Family Tree, told Home Health Care News. “We are still the equity holders of the business. Firmament came in and joined us as a debt partner.”

Family Tree offers concierge-level caregiving, private nursing and care management services throughout Texas and Colorado. Last year, the company rebranded and began operating under its current name.

In 2021, Family Tree merged with Evergreen Private Care of Houston.

Firmament’s investment will mainly fuel Family Tree’s M&A efforts. So far, Firmament has already funded two Family Tree acquisitions from December.

“We’ve got a few more under [letter of intent] and coming down the pipeline,” Gottschalk said. “They are helping us by funding M&A activity and other growth initiatives for the company. They are solely debt providers for us today.”

In terms of M&A, the Texas and Colorado markets are Family Tree’s key areas of focus.

“We’re looking to build a private care business of great depths in those two markets, and we’re less about breadth and more about depth, with a full service line, which for us means a comprehensive service line of private-pay services, including private nursing, professional caregiving, and geriatric care management,” Gottschalk said. “Those three service lines are our bread and butter.”

Gottschalk noted that Family Tree isn’t looking to be “a bunch of dots on a map.” Instead, the company’s goal is to be a meaningful player in every market it serves.

“We’re not looking to necessarily have a bunch of new offices,” he said. “We will do some, but at the end of the day, the focus is to get even deeper and markets we currently serve. That’s caregiving companies in Houston, San Antonio, Austin, Dallas, Fort Worth and Denver. We are looking to acquire like-minded folks that care about their legacy and care about quality.”

The company is also interested in acquisitions that will further strengthen its clinical and caregiving staff.

For Family Tree, it’s important to grow both organically and through acquisitions.

“Both of them are equally important parts of the strategy, we can not only rely on one,” Gottschalk said. “We really need both to be firing in order for us to meet our objectives.”

Additionally, Family Tree is working to continue to diversify its service offerings.

“The majority of the players in the private-pay space focus on non-medical caregiving, and that is the largest service line for Family Tree Private Care as well,” Gottschalk said. “But it’s been a significant endeavor for us to do all three of our service lines. The purpose of this strategy is to have a very healthy and deep presence in all three service lines in every single market we serve.”

Aside from the investment, there are a number of other areas of the business that are also top of mind at Family Tree moving forward.

“We were doing a lot of integration work with systems, we’re trying to find what systems are going to best support our business in the future,” Gottschalk said. “There’s certainly a lot of other projects going on.”

Joyce Famakinwa

Joyce Famakinwa is a Chicago area native who cut her teeth as a journalist and writer covering the worker’s compensation industry and creating branded content for tech companies and startups. When she isn’t reporting the latest in home health care news, you can find her indulging in her love of vintage clothing, books, film, live music, theatre and reality tv.