By Thomas A. Parmalee
When Homesteaders Life Company made the bold move to join Birch Hill Equity Partners in taking Park Lawn Corp. private in 2024, it saw a transformational opportunity to double down on the funeral profession through a $250 million investment made through an affiliate, Viridian Acquisition.
Now, almost two years after the $970 million deal was completed, the partnership is facing a significant leadership transition.
The recent departure of three key Park Lawn executives, including Jennifer Hay; CEO; Matt Forastiere, chief operating officer; and Jay Dodds, chief strategy officer, has left a leadership void, but a plan is already in place to ensure the company is well positioned to deliver for its partners and families.
In a statement, a Park Lawn spokesperson noted that Markus Sturm has been promoted from chief financial officer to president. “His leadership, alongside the active engagement of the board, led by Board Chair Steve Shaffer, will help ensure continuity of care,” the spokesperson said. “The leadership team and board bring extensive operational expertise to execute on the company’s vision and shared commitment to employees, clients, and partners.”
Shaffer (pictured at top), also the president, CEO and board chair at Homesteaders, has served as Park Lawn’s board chair since the deal to take Park Lawn private was finalized in August 2024, confining his role to governance and strategic oversight.
In the weeks ahead, however, he’ll be playing a more active role in supporting Park Lawn’s new leadership as they manage day-to-day operations, drawing on his decades of experience in the deathcare profession.
Homesteaders’ investment assumptions were built on the reality of a profession facing a massive succession crisis. With NFDA research showing 46% of owners planning to retire in the next five years, Homesteaders sees Park Lawn as a vital vehicle for preserving business integrity during these transitions.
“More than 80% of owners will be 55+ next year, and many don’t have a family member or key employee interested in taking over the business,” Shaffer said. “We want to be part of that solution. Our approach – through initiatives like our lending program and investments like Park Lawn – is about supporting transitions in a way that preserves the integrity of the business and keeps the family experience at the center.”
Just as importantly, it’s about helping ensure those transitions are guided by partners who understand and value funeral service, rather than opening the door to outside investors with alternative reasons for investment, Shaffer said.
Although Shaffer will play a larger role at Park Lawn for the immediate future, Homesteaders noted that it’s a “short term step to support the organization through its leadership transition.” The company noted, “With strong teams in place at both organizations, this temporary arrangement allows for continuity and stability without disrupting ongoing operations. Both companies are well positioned to address this short-term arrangement.”
Grading the Park Lawn Investment
Homesteaders takes a creative, long-term approach to investing – one that’s not just focused on returns, but on how those returns can be used to strengthen the profession, Shaffer said.
“Our investment in Park Lawn fits within a broader strategy to deploy capital in ways that both generate value and create opportunities to reinvest back into the profession,” he said. “We’ve done that in direct ways through partnerships like our funeral home lending program, which has already deployed more than $250 million in financing to support independent operators. We’re also able to leverage our investment returns to drive innovation in the space, developing new and refined technology that help our funeral home customers meet the evolving needs of families.”
While the leadership changes at Park Lawn may have caused some to wonder if Homesteaders is happy with its investment, Shaffer said it’s going well. “We have already seen significant benefit from our investment in Park Lawn and feel confident in our expectation of returns over the long and medium term,” he said.
Ryan Goins, senior vice president of finance and accounting at Homesteaders, noted that Homesteaders has spent decades selecting investments designed to mature over 10, 15, even 20 years, intentionally aligning with the natural lifecycle of the policies it sells. “Because of that, we can be very patient and disciplined in the ways we deploy capital,” he said. “When we considered the fundamentals of an investment in Park Lawn (demographics, the age of funeral home ownership and the number of businesses that will transition in the next decade), we were – and remain – confident in the long-term opportunity.”
As it pertains to its investment in Park Lawn, the role of Homesteaders has remained consistent with what it has always outlined, said Nick Gerhart, chief operating officer at Homesteaders. “We are a minority investor focused on governance and strategic oversight, not day-to-day operations,” he said. “That said, influence at the board level often shows up through experience and perspective, and that’s where someone like Steve Shaffer naturally adds value.” He added, “Steve understands what drives success for funeral home operators and the families they serve. Ultimately, his engagement as board chair is about strengthening the organization for the long term.”
Will Bischoff, senior vice president of strategic markets at Homesteaders, expects Shaffer to naturally lean into getting Park Lawn through this transition. “In my 20 years working alongside him, I’ve seen Steve build a reputation as both a mentor and a trusted adviser to funeral professionals across the country,” he said. “That’s not something that turns on or off depending on the setting.”
Courtney Gould-Miller, who joined Homesteaders at chief growth officer at the beginning of this year, noted that Shaffer has the “unmatched leadership to support Park Lawn in this transition while continuing to deliver on his responsibilities at Homesteaders.”
A Deliberate Pivot
While Homesteaders serves as a major minority investor, Shaffer emphasized that the decision to change leadership was a collective move by the Park Lawn Board of Directors.
“The leadership transition at Park Lawn was led by the company’s board of directors,” Homesteaders stated regarding the shift. “Steve Shaffer participated in those discussions in his role as board chair, but this was not a unilateral decision — it was reached unanimously by the full board after a patient, thoughtful and deliberate evaluation process.”
The board concluded that a change was essential to “best align the company for the future” and ensure it remains “well-positioned to deliver for its partners and the families they serve.”
As to why the changes at Park Lawn were made, Homesteaders declined to provide details but did say, “Homesteaders and Park Lawn operate as independent organizations. Homesteaders does not have visibility into Park Lawn’s location management or day-to-day operations and is not in a position to comment on their operational priorities; however, we do see various areas of opportunity to improve results and the long-term focus of the organization.”
Strengthening the Preneed Core
One of the most significant shifts since Homesteaders made its Park Lawn investment has been the full integration of preneed services. While Park Lawn locations previously had a fragmented relationship with Homesteaders, they now exclusively use the company for preneed insurance in the U.S.
“During the due diligence process, we engaged in thoughtful discussions with Park Lawn’s leadership team, board and other investors about how to best position the preneed strategy for the long term,” Shaffer said. “We were in alignment that leveraging Homesteaders as a primary – and in many cases exclusive – preneed provider would create consistency, scalability and long-term value across their organization. We also saw opportunity in the preneed arena and through our holistic partnership have been able to help grow preneed at Park Lawn in a material way.”
The reality is that Homesteaders brings deep experience, financial stability and a suite of products, marketing and sales solutions that can be effectively scaled across a large and diverse network of locations, Shaffer said. “Just as importantly, we understand the nuances of the funeral profession and what it takes to support both growth and meaningful family experiences,” he said.
The Homesteaders/Park Lawn partnership is built on aligning the preneed insurer’s capabilities with its model, ensuring their locations have the tools, support and consistency they need, while still allowing for the flexibility required to serve families and communities effectively, Shaffer said.
Balancing Independence and Influence
A recurring concern among independent funeral home owners is whether Homesteaders’ stake in a major consolidator creates a conflict of interest.
The leadership team at Homesteaders is quick to dismiss these worries, pointing to its continued support of independent firms through the lending program it offers in conjunction with The Bancorp, which has deployed over $250 million to non-Park Lawn operators.
“We saw a largely positive response from our independent funeral home customers following the Park Lawn investment,” Bischoff said. “Many recognized it as a smart, strategic move that strengthens our financial position and ultimately allows us to reinvest back into our customers through enhanced programs, tools, innovation and strong policyholder returns. That includes things like new loyalty programs, expanded services and policy crediting rates that are at a 10-year high.”
Homesteaders’ commitment to independent operators and the service level its partners receive has not changed, Bischoff emphasized. “Our independent customers continue to receive the same high level of partnership, attention and resources they’ve always had,” he said. “Our investment in Park Lawn doesn’t come at the expense of those relationships — it strengthens our overall organization, which benefits all the funeral providers we serve.”
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