Carousel Capital (“Carousel”) today announced the closing of a continuation vehicle to support the next phase of growth for Ethos, a leading national provider of tech‑enabled insurance claims investigation and medical management solutions. The continuation vehicle is anchored by a lead investment from Dextra Partners, with Carousel Capital Partners VI (“Fund VI”) providing a significant investment alongside.
Since partnering with Ethos in 2020, Carousel has supported the company through a period of meaningful transformation. Under CEO Micah Smith’s leadership, Ethos has evolved from a specialized investigations provider into a fully integrated platform offering a comprehensive suite of investigation and medical management services. During this time, the company has broadened its national footprint, expanded its service capabilities, completed a series of strategic acquisitions, and invested substantially in its proprietary Sightline operating system. These efforts also include strengthening Ethos’ internal technology organization, advanced security protocols and developing AI‑enabled tools such as Pathfinder, which provide actionable insights across the claims lifecycle.
With this foundation in place, Carousel believes the continuation vehicle will support the next phase of Ethos’ long‑term strategy, including further technology investment, continued expansion of medical management offerings, acceleration of the company’s M&A roadmap, and deeper penetration across carriers, TPAs, and self‑insured organizations.
In connection with the transaction, Ethos has also established a new senior credit facility led by Freeport Financial with additional participation from Apogem Capital and Barings.
“Our focus has always been on delivering meaningful, measurable value for our customers,” said Micah Smith, CEO of Ethos. “Carousel has been an extraordinary partner, and this transaction positions us to continue investing in the capabilities and innovations that allow us to provide our carriers and adjusters the very best solution in our industry with unrivaled sophistication as their needs become more complex.”
Evercore served as financial advisor, and Latham & Watkins LLP and K&L Gates LLP served as legal advisors to Carousel and Ethos on the transaction.
