Frontenac Company Leads $26 Million Investment In Trilogy Health Services, Operator Of Midwestern Senior Care Facilities

CHICAGO, May 4 /PRNewswire/ -- Frontenac Company, a Chicago-based private equity investment firm, announced today that it has led a $26 million investment in Trilogy Health Services, a Louisville, KY operator of 20 Midwestern health campuses providing senior care. Other investors include Randy Bufford, Founder and Chief Executive Officer of Trilogy; his management team; Blue Chip Venture Company of Cincinnati, OH; and Salix Ventures of Nashville, TN. The new capital will be used to strengthen Trilogy's balance sheet and position it to expand its network of facilities.

"This is a great opportunity to grow a mid-sized market leader, with a strong current business base and ample expansion opportunities. The company has achieved critical mass and is generating strong cash flow. In addition, Randy Bufford represents the quintessential CEO1st(TM) partner for Frontenac," said Jeremy H. Silverman, Managing Director, Frontenac Company. "The foundation of our investment success is backing talented, proven operating executives in building market segment leaders in growth areas such as senior care."

Mr. Bufford has more than 20 years of experience in the senior care industry, while his management team has more than 100 combined years. He has a history of leading successful senior care companies including Transitional Health Services, which was ultimately merged into Centennial HealthCare prior to its IPO in 1997. "Randy is an experienced executive with encyclopedic knowledge of his business and of the industry, a strong financial orientation, and meticulous attention to operational detail," Silverman said. "He has built a company whose management and employees are dedicated to providing superior, compassionate service to its residents, their families and the communities in which they operate."

"We are delighted to partner with Frontenac, Blue Chip and Salix, all investors with deep knowledge of and a successful history in healthcare services investing," said Randy Bufford. "Our new investors will bring added depth to our board as well as financial resources that will enable us to achieve the next level of growth. We look forward to working with them in growing the company's business over the next few years."

Trilogy provides a continuum of care to address the evolving needs of the elderly by offering both skilled nursing and assisted living care at its health campuses, all of which are new or nearly new. These "combination facilities" are attractive to both customers and investors alike. Seniors and their families prefer the comfort and convenience of having both services available in one location to accommodate changing circumstances. Although each service is separate, they share common infrastructure, leading to operating efficiencies. Trilogy's focus on under-served, non-urban communities allows the company to become the local market leader and draw from a stable, committed labor force.

"Our investment in Trilogy continues Frontenac's long history of healthcare services investing," said Paul D. Carbery, another Frontenac Managing Director. "We have historically committed capital to a broad range of healthcare companies, including Sunrise Senior Living, now the nation's largest operator of assisted living facilities, in which our firm invested when it was like Trilogy -- a well-managed private company with excellent growth prospects."

"In addition to the quality of Trilogy and its management team, this investment reflects the convergence of two positive trends," continued Carbery. "First, demographics suggest that demand for Trilogy's services will grow significantly over the next several decades allowing its facilities to operate at nearly full capacity, as they do today. Moreover, government reimbursement for senior care appears to have stabilized."

About Frontenac

Frontenac Company is a Chicago-based private equity investment firm with more than $1 billion under active management. Through its CEO1st(TM) investment approach, Frontenac teams with proven executives to acquire and grow companies providing services and value-added products to customers. Its principal investment areas include healthcare, financial, human resources, education and training, industrial, marketing, media, and technology services markets. Frontenac investors include institutions, pension funds and individuals in the United States and Europe. For more information on Frontenac, please visit http://www.frontenac.com/.

About Trilogy Health Services

Trilogy Health Services, formed in 1997, started with a simple but innovative vision -- to provide housing and healthcare services to older adults by combining adult day health, assisted living and skilled nursing services on one campus. The company's goal is to set the standard for maximizing the quality of life and dignity of older adults. For more information on Trilogy, please visit http://www.trilogyhs.com/.

Frontenac Company

CONTACT: Jeremy H. Silverman, +1-312-368-0044, jsilverman@frontenac.com,or Paul D. Carbery, +1-312-368-0044, pcarberry@frontenac.com, both ofFrontenac Company LLC, or Randall J. Bufford of Trilogy Health Services LLC,+1-502-412-5847, rbufford@trilogyhs.com

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