Balance Point Announces its Investment in SG Homecare

News provided by

May 20, 2024, 11:00 ET

WESTPORT, Conn., May 20, 2024 /PRNewswire/ -- Balance Point Capital Advisors, LLC ("Balance Point"), in conjunction with its affiliated funds, Balance Point Capital Partners V, L.P. and Balance Point Capital Partners VI, L.P., is pleased to announce its investment in SG Homecare ("SG", or the "Company"), a portfolio company of Sverica Capital ("Sverica"), a Boston, MA based private investment firm. Continuing its position as a leading provider of flexible capital to the lower middle market, Balance Point arranged debt financing to support the Company's acquisition of Western Drug ("Western"), retire existing debt and provide capital for future working capital needs.

Founded in 2001, SG is a provider of durable medical equipment ("DME"), disposable medical supplies, and related services with 16 locations throughout California. The Company has a demonstrated track record operating the capitated revenue model, which has been well-received among large physician networks managing thousands of lives. Founded in 1977, Western is a DME and medical supplies provider in Southern California with 9 locations, generating the majority of its revenue from its large fee-for-service customer base.

"Balance Point is excited to support SG's continued growth and the acquisition of Western. Through this combination, SG has further strengthened its position as a leading DME provider in California," said Balance Point Partner Adam Sauerteig. "The combination of both SG and Western provides a clear value proposition within the DME space in conjunction with significant synergies and operating efficiencies".

Jay Wendt, CEO of SG, said "Balance Point is a valuable financing partner that worked diligently to understand our business and the opportunity at hand. We look forward to partnering with them as we integrate the businesses and continue to pursue our growth objectives."

"We are thrilled to work with Balance Point again and look forward to a productive partnership in support of the Company," added Doug Patrican, Vice President at Sverica.

About Balance Point
Balance Point is an alternative investment manager focused on the lower middle market. With approximately $2.1 billion in assets under management, Balance Point invests debt and equity capital in select lower middle market companies across a variety of investment vehicles. Balance Point takes a long-term, partnership approach to investing and is committed to building lasting relationships with its partners, management teams and intermediaries.
Balance Point is a registered investment advisor. Further information is available at www.balancepointcapital.com.

About SG Homecare
Founded in 2001 and headquartered in Tustin, CA. SG Homecare is a provider of DME, disposable medical supplies, and related services (including custom rehab, wound care, and O&P products) throughout California. For more information visit www.sgdme.com

Media Contact:
Adam H. Sauerteig
Office: 203-652-8555
[email protected]

SOURCE Balance Point Capital