Foley Represents InnovAge in Investment Agreement and Sets Standard for PACE Conversions

Foley & Lardner LLP provided legal counsel to InnovAge, a leading provider of high-quality senior care, in its agreement with renowned private equity firm Welsh, Carson, Anderson & Stowe and its conversion from a nonprofit to for-profit business. As the United States’ second-largest, and Colorado’s largest, provider of the Program of All Inclusive Care of the Elderly (PACE), InnovAge has set the standard for PACE conversions nationwide.

The net proceeds of the sale of InnovAge assets, which totals $196 million (with a potential $8 million earn out in 2018) will be used to create and fund the newly formed NextFifty Initiative, an independent, Colorado-based nonprofit organization dedicated to funding mission-driven, senior care related initiatives that improve community services for the elderly population and caregivers. InnovAge and its current management team will continue to lead strategic direction and the day-to-day management of the organization.

“This agreement provides InnovAge with the opportunity to expand its operations, while attracting investors and continuing to benefit Colorado’s under-served aging population,” said Mark Waxman, lead Foley partner on the deal. “InnovAge’s success in this partnership is a result of the organization’s hard work over a long period of time to efficiently deliver quality services to the frail elderly, and now to access the capital markets through a nonprofit to for-profit conversion to continue to grow its mission-based orientation. We were pleased to assist InnovAge in surmounting a series of complex legal challenges, both state and federal, to achieve its business goals. In doing so, InnovAge intends to continue to set a high standard in the delivery of quality services to the elderly as a key player in the PACE programs in California, Colorado and New Mexico.”