Investment Focus
A disciplined, thesis-driven approach to partnering and scaling lower-market healthcare tech-enabled services and other select businesses alongside exceptional management teams.
Target Investment Criteria
General target profile of our platform investments
Investment Scope
Lower middle-market healthcare IT and tech-enabled payor and provider services with the ability to expand into adjacent healthcare solutions and services
Other select business sectors that ailgn with our team's experience and expertise
Other select business sectors that ailgn with our team's experience and expertise
Sector Focus
Benefit Brokerages, TPAs, MGUs, Captives, Cost Containment, Billing/RCM, Value-Based and At-Risk Provider Services, BPOs, Infusion/Custom Compounding, Private-Pay Home Care, Life Science Services, and other similiar healthcare solutions and services
Broad scope across additional sectors including technology & software, industrial & specialty manufacturing, business & consumer services, real estate & infrastructure, aviation, and others
Broad scope across additional sectors including technology & software, industrial & specialty manufacturing, business & consumer services, real estate & infrastructure, aviation, and others
Target Revenue / EBITDA
$5–20M / $0M–$5M
Ownership Structure
Majority or Significant Minority Stakes
Geography
Continental United States
Equity Capital
Approximately $5M–$15M from deal investors with additional capacity from lender community
1st Professional / Lead Investor
90%+ / 100%
Hold Period
5–7 years with flexibility to hold high-performing businesses longer when it enhances long-term value
Business Characteristics We Target
The following are characteristics we prioritize in our investments. While no company is expected to possess all of them, we seek businesses that demonstrate several of these attributes and have the potential to strengthen others through strong management and operational improvement.
Recurring or Predictable Revenue streams in high growth, recession-resilient markets
Strong Management Team aligned and capable of executing on the growth strategy
Diversified Customer Base with high retention and low churn
Scalable Infrastructure: Ability to support expansion with limited CapEx
High Switching Costs: Products/services deeply embedded in customer workflow causing “sticky” relationship
Proven Track Record: Consistent historical Rev/EBITDA growth of 15%+ with EBITDA margins of 20%+ and attractive unit economics
High Barriers to Entry: Difficult for new competitors to replicate
Low leverage or ability to support leverage with high free cash flow conversion
Technology Enablement: HCIT tools and automation driving efficiencies
Fragmented Industry: Clear opportunity for consolidation and roll-up strategy with clear exit pathways to larger strategics or VC/PE sponsor
Highly cyclical industries or primarily one-time project-based business models
Structurally declining end markets facing long-term secular contraction
Commoditized or non-essential offerings with no pricing power
Regulatory risk or unpredictable compliance burden
Target Tuck-in Acquisition Profile
While specific investment criteria and business characteristics will depend on the portfolio company’s strategy, there are core attributes that all tuck-in acquisitions should strive to achieve to maximize value.
Strategic Attributes
Customer Expansion
Access to new customer relationships and revenue streams
Low Integration Risk
Cultural and operational compatibility with the platform
Capability Expansion
Adds complementary products, services, and/or technology
Talent Acquisition
Brings specialized expertise or leadership to strengthen the platform
Cross-Selling Opportunities
Ability to sell existing offerings to acquired customers and vice versa
Operational Efficiency
Enhances supply chain, production, or distribution capabilities
Geographic Expansion
Entry into new regions or markets
Brand Strengthening
Improves market positioning or reputation
Economic Attributes
Day 1 Cost Synergies
Immediate savings through shared SG&A, procurement, and overhead
Scale Building
Increases revenue and EBITDA to unlock higher exit multiples
Margin Enhancement
Opportunity to improve profitability through integration and potential uplift in overall margins
Multiple Arbitrage
Acquire smaller businesses at lower multiples to enhance blended valuation
High Cash Flow Conversion
Strong ability to generate free cash flow post-integration
Accretive to Valuation
Clear path to creating shareholder value