Monroe Capital has provided a senior credit facility to support private equity firm Warburg Pincus’ investment in Waco, Texas-based home-based care provider Cornerstone Caregiving.
Cornerstone provides hospice, home care, palliative care and a range of other home-based health care services. The company, which was founded in 2020, operates hundreds of locations across the United States.
“The transaction reflects continued private equity interest in non-acute health care delivery models that can absorb patient volume outside traditional institutional settings,” Monroe Capital indicated in a statement. “Home-based care providers have become increasingly important as hospitals and insurers push to reduce inpatient utilization and shift more care into lower-cost residential environments.”
Monroe Capital acted as lead arranger and administrative agent on the financing package tied to Warburg Pincus’ investment. Financial terms were not disclosed.
Warburg Pincus established its first institutional fund in 1971. Since then the firm has raised 22 private equity, two real estate, and one capital solutions funds, which have invested more than $130 billion in more than 1,100 companies globally.
For Monroe Capital, the financing marks another addition to its growing health care services portfolio within a broader private credit platform that includes direct lending, structured credit, technology finance, and alternative credit strategies. The Chicago-based lender has emerged as an active participant in sponsor-backed middle-market health care transactions, where financing structures are increasingly designed to support consolidation across fragmented service segments.
“The Cornerstone investment arrives as home-care providers continue balancing rapid expansion opportunities against the operational realities of labor-intensive service delivery,” Monroe Capital stated. “Companies that can improve caregiver utilization, maintain service consistency across expanding footprints, and integrate more efficiently with health care systems are likely to remain central targets for both private equity capital and private credit financing.”