Kline Hawkes Backs
LivHOME
Compelling Demographics Spur Investment
in SoCal Eldercare Company
In early February 2003, Kline Hawkes Pacific invested $3 million in a new portfolio company, LivHOME, a private pay, at-home assisted living company, headquartered in Los Angeles.
Founded in 1999, LivHOME provides high quality professional care and support for the elderly who wish to continue living independently in the comfort of their home but who need assistance with the tasks of daily life. Targeting private pay/private insurance high net worth individuals, LivHOME teams “geriatric care managers” with specially trained “caregivers” to provide or coordinate all the services a senior may require to maximize their quality of life in the residential setting of their choice. These services range from minimal to comprehensive, temporary to permanent and cover needs such as cooking, shopping, housekeeping, transportation, medical monitoring, health and safety supervision, counseling, contingency planning and social interaction programs, among many others.
LivHOME’s careful selection and grooming of its caregivers, who are direct LivHOME employees, as opposed to outside contractors, ensures their clients receive the highest quality of attention and care. This emphasis on quality of service, combined with strategic acquisitions, has afforded LivHOME tremendous growth. Operating out of Los Angeles, Santa Barbara, Orange County and San Diego, LivHOME has grown at a CAGR of 174% since inception and is now the largest private pay, at-home eldercare company in the country.
Commenting on the appeal of the LivHOME investment, Kline Hawkes Principal and LivHOME board member, Klaus Koch remarked, “When you consider the number of people aged 65 and older is projected to double in the next 30 years and that seniors are retiring with more money in their pockets; the demographics alone make the industry extremely attractive. Combine that with LivHOME’s outstanding management team led by CEO Mike Nicholson, a 20 year industry veteran, and Chief Professional Officer Steve Barlam, who is also President of the National Association of Geriatric Care Managers and you have an extremely compelling investment opportunity.”
“I’m looking to 2003 with great anticipation,” enthused Mike Nicholson. “Now that we have an institutional investor like Kline Hawkes onboard, who has tremendous ties to the local investment community, I feel that all the pieces are in place for us to become the dominant player in what is really quite a fragmented industry.”
A portion of the Series B round will be used for the strategic acquisition of San Diego based at-home eldercare company, Age Concerns, with the remainder of the funds being set aside for future acquisitions.