HIG Capital has completed an investment in GT Independence, a Michigan-based provider of financial management services for Medicaid-funded home care programs, as the private equity firm expands its healthcare portfolio targeting government-reimbursed care delivery models.
The transaction leaves founder John Carmichael in place as president and chief executive while maintaining his ownership stake. GT Independence serves more than 50,000 individuals across 18 states and the District of Columbia, administering self-directed care programs that allow Medicaid participants to hire and manage their own caregivers rather than relying on institutional providers.
Financial terms were not disclosed. HIG Capital, founded in 1993 by Sami Mnaymneh and Tony Tamer, manages $70 billion in capital and has invested in more than 400 companies globally since inception.
Self-Directed Care Model Attracts HIG Capital Investment
GT Independence operates as a financial management services provider, handling payroll, tax compliance, and administrative functions for Medicaid participants who direct their own care. The model addresses workforce shortages in professional caregiving by enabling patients to hire family members, friends, or trusted individuals rather than agency-employed workers.
The Carmichael family founded GT Independence in 2004 after navigating self-directed care programs for a family member, according to company materials. The business has since expanded from Michigan to approximately 20 jurisdictions, partnering with state Medicaid administrators and managed care organizations to facilitate program compliance and payment processing.
Scott Zhu, managing director at HIG Capital, characterized GT Independence as demonstrating “exceptional service quality” and commitment to participant-centered care. The investment positions HIG Capital to support geographic expansion and potentially pursue acquisitions in the fragmented financial management services sector.
Carmichael said the partnership would enable GT Independence to enter new markets while helping more people “be in control of how they receive care and support in their homes and communities.” The company’s proprietary technology platform tailors services to state-specific regulatory requirements and individual participant needs.
Healthcare Services Sector Draws Private Equity Capital
The GT Independence investment reflects continued private equity interest in healthcare services businesses with government payor exposure and recurring revenue characteristics. Self-directed care programs have grown as states seek to control Medicaid long-term care costs while addressing caregiver workforce constraints.
Financial management services providers generate fees based on participant enrollment and transaction volumes, creating predictable revenue streams tied to Medicaid program participation rates. These businesses typically maintain long-term contracts with state agencies and managed care organizations, reducing customer concentration risk compared to other healthcare services models.
HIG Capital has completed several healthcare investments throughout 2025, including the acquisition of GetixHealth, a revenue cycle management provider, and the sale of Soleo Health, an infusion pharmacy and specialty care platform. The firm also divested SoldierPoint Digital Health, the telehealth division of portfolio company Iron Bow Technologies, to GovCIO.
Earlier investments include Avanta Salud, a Spanish occupational health services platform, and ITH Group, a UK pharmaceutical compounding services provider. These transactions demonstrate HIG Capital’s focus on healthcare services businesses operating in regulated markets with government or institutional payor relationships.
Morgan Stanley and Guggenheim Securities served as financial advisors to HIG Capital on the GT Independence transaction, with McDermott Will & Schulte providing legal counsel. The use of dual financial advisors on a significant investment suggests competitive dynamics in the financial management services sector.
Middle-Market Healthcare Strategy
HIG Capital structures investments across majority and minority positions depending on company circumstances and founder preferences. The GT Independence deal preserves Carmichael’s leadership and ownership stake while providing growth capital and operational resources from HIG Capital’s healthcare team.
The firm maintains offices in Miami, New York, Boston, Chicago, Los Angeles, San Francisco, and Stamford, with dedicated sector teams covering healthcare services, technology, business services, and consumer markets. HIG Capital’s healthcare portfolio spans providers, payors, technology platforms, and services businesses.
GT Independence’s expansion from Michigan to 18 states demonstrates the scalability of financial management services platforms across different Medicaid program structures. Each state administers self-directed care programs with varying eligibility criteria, service arrays, and payment methodologies, requiring technology systems capable of managing regulatory complexity.
The company’s growth trajectory positions it to capture market share as states expand self-directed care options in response to demographic pressures and workforce limitations. Medicaid long-term care spending continues to grow as the population ages, creating sustained demand for cost-effective alternatives to institutional care settings.
Industry participants note that financial management services providers benefit from legislative and regulatory support for consumer-directed care models. Multiple states have expanded self-direction programs in recent years, broadening the addressable market for companies like GT Independence.
The investment arrives as private equity firms increasingly target healthcare services businesses with embedded government relationships and mission-critical functions. These characteristics provide downside protection during economic uncertainty while offering growth opportunities through geographic expansion and service line additions.
HIG Capital expects the partnership to accelerate GT Independence’s market penetration and support potential add-on acquisitions in adjacent service categories serving the self-directed care population.
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