The Lunchline Way in Home Infusion: Our Thesis for Partnering with CureCare to Navigate a Growing, Fragmented Sector

At Lunchline Partners, "The Lunchline Way" is our compass – a philosophy centered on transforming lower middle market (LMM) businesses through active partnership, strategic "Build-Ups," and the disciplined application of our Value Creation Formula: (Multiple Levers + ROIC Deployment)^(Systems + Culture). While many of our endeavors involve deep, day-to-day operational engagement, our investment in CureCare, a leading provider of home infusion nursing services, exemplifies how these principles can also drive success through strategic board representation and a shared vision.

CureCare, formerly acquired as Project Kitty Hawk, operates in the dynamic home infusion industry. This sector immediately resonated with our core investment thesis due to its favorable characteristics: significant annual growth tailwinds, a high degree of fragmentation beyond the top players, the essential nature of its services leading to chronic, recurring revenue streams, and a compelling value proposition as care increasingly shifts to the cost-effective home setting. It presented a classic LMM opportunity where a focused platform could achieve scale and drive efficiencies.

Embracing "The Lunchline Way" at CureCare

From our initial thesis development in infusion nurse services, the journey with CureCare has been about applying core Lunchline principles to unlock its significant potential:

• Strategic "Build-Up" in a Fragmented Market: The home infusion market is populated by many smaller players, often lacking the sophistication or resources to scale independently. Our strategy has involved both strong organic growth and disciplined M&A. CureCare's acquisition of Professional Home Infusion (PHI) is a prime example, allowing strategic entry into the New Jersey market at an attractive valuation, diversifying its customer base, and offering rate uplift opportunities. This aligns perfectly with our "Build-Up" approach, targeting "Attacker" opportunities to create market-leading platforms.

• "Human Capital as Alpha" – A Culture of Excellence: Recognizing that people are the most valuable asset in any service business, especially healthcare, fostering a strong culture has been paramount. CureCare achieved record-breaking performance in 2024, with leadership attributing this success significantly to "the shift toward focusing on culture". This involved rolling out a mission, vision, and core values, resulting in a highly engaged team. The company's nurse-centric approach yielded an impressive 4.4/5 satisfaction rating in a recent nurse survey. This commitment to human capital mirrors the WIN Methodology we champion across our portfolio, emphasizing that employee satisfaction drives business success.

• Developing Robust "Systems" for Scalable Growth: As CureCare has grown, so has the need for stronger operational frameworks. Key priorities for 2025 include implementing standardized processes and procedures company-wide and enhancing the nurse onboarding system to manage high volumes effectively. This focus on building scalable systems is a critical component of "The Lunchline Formula," ensuring consistency, efficiency, and the capacity for sustained growth. The planned integration of PHI, facilitated by both companies utilizing the same Alayacare software operating system, further underscores this commitment to seamless systems.

• The Lunchline Formula in Action: CureCare's remarkable growth – nearly doubling its active specialty pharmacy partners and achieving a substantial increases in its acceptance rates over time – demonstrates the power of activating "Multiple Levers." This organic growth, combined with disciplined "ROIC Deployment" through strategic acquisitions like PHI, is amplified by the evolving "Systems" and the strong, empowering "Culture" being cultivated within the organization.

Guidance and Governance: The Role of Board Representation

While Lunchline Partners is not involved in the day-to-day management of CureCare, our active board representation allows us to provide strategic guidance, oversight, and support. We work closely with the CureCare leadership team, including Andrew Diaz and Jeff Romano, to shape long-term strategy, champion operational best practices learned across the Lunchline ecosystem, and ensure disciplined capital allocation. Our experience in building people-intensive businesses, such as Otter Learning, and leveraging frameworks like the WIN Methodology, provides a valuable sounding board and resource for the CureCare team as they continue to scale.

The success CureCare is achieving is a powerful illustration of "The Lunchline Way." It highlights how a commitment to operational excellence, strategic growth, a profound respect for human capital, and strong governance can transform LMM businesses into resilient, market-leading enterprises. We are incredibly proud to partner with CureCare on this journey and excited for its continued success.