HIG Capital supports GT Independence to scale self-directed care

H.I.G. Capital has completed a strategic minority investment in GT Independence, backing the U.S. home‑based care specialist as it expands capacity for Self Directed Care (SDC) under Medicaid. The move pairs private equity firepower with a technology‑enabled Financial Management Services (FMS) model designed to let participants hire trusted caregivers and control their care budgets.

GT Independence, led by President and CEO John Carmichael, will keep its leadership team intact and retain the operational model that has driven its growth. Headquartered in Sturgis, Michigan, the company now supports more than 50,000 individuals across 18 states and the District of Columbia, offering payroll, compliance and administrative support that reduces friction for self‑directing participants while helping payors manage costs.

The investor, H.I.G. Capital — a global alternative asset manager with about $70 billion of assets under management — said the capital will be used to accelerate state rollouts, deepen partnerships with managed Medicaid organisations (MCOs) and invest further in GT’s proprietary platform. Scott Zhu, Managing Director at H.I.G., highlighted GT’s participant‑centric reputation and the operational leverage H.I.G. can provide to scale the business across additional jurisdictions.

GT’s FMS model sits at the intersection of two structural trends: rising demand for home and community‑based services as the U.S. population ages, and increasing shifts of Medicaid long‑term services and supports (LTSS) into managed care frameworks. Self Directed Care programs are gaining traction because they frequently deliver higher participant satisfaction and can be cost‑efficient for states and MCOs — a profile that has drawn a wave of private capital into the sector.

From a market perspective, investors are targeting companies that combine regulatory expertise, scalable technology and service operations. GT’s proposition — administrative automation plus localised participant support — aims to reduce administrative overheads for payors, improve compliance and ease the pressure on professional caregiver supply by enabling participants to recruit family or community carers.

Advisory roles on the transaction included financial advisers to H.I.G.: Morgan Stanley & Co. LLC and Guggenheim Securities, LLC, with legal counsel provided by McDermott Will & Schulte LLP. The deal underscores continued PE interest in HCBS and participant‑directed models, where consolidation and technology investment offer clear pathways to scale.

For GT Independence, the infusion of capital and sector expertise positions the company to accelerate product development and state contracting activity. For payors and policymakers, a larger, better‑funded FMS provider could mean more efficient program administration and broader access to personalised home care — a critical outcome as demand for in‑home supports expands across Medicaid populations.