Pharos is primarily seeking to provide capital
to established healthcare companies based in the United States.
Our investment preferences include the following:
- Funding for acquisitions, leveraged buyouts, management buyouts, and recapitalizations of cash flowing businesses.
- Revenue of at least $10 million.
- EBITDA of at least $2 million.
- Growth rate of 20% or more, either organically or via acquisition.
- Investment size of $20 to $50 million per platform company.
- Emphasis on undercapitalized businesses in underserved regions across the nation.
- Within the healthcare sector, we focus on the following sub-groups:
- High quality, outcomes focused healthcare providers
- Managed care services
- Behavioral health
- Wellness, disease and/or population management
- Diagnostic technology and services
- Medical device companies with FDA approved technology
- Healthcare data analytics and outcomes measurement
- Other companies serving the healthcare sector
When evaluating an investment opportunity, we also consider the following criteria:
- We seek to make investments in healthcare companies that improve the patient experience of care (including quality and satisfaction), reduce the total cost of health care, and possess attractive growth prospects either internally through core revenue growth or externally through acquisitions.
- Conversely, we do not target investments in companies in the drug development, life sciences, and biotechnology sectors, due to the long development cycle necessary before they typically generate significant revenue.
- We look to back companies with professional management teams whether that be the existing team, our stable of proven Healthcare Operating Partners, or a combination of both.
- We prefer portfolio companies that offer multiple exit opportunities. These exit strategies may involve a financial buyer, an initial public offering, a recapitalization or a sale to a strategic purchaser.
- We tailor the deal structure of each investment to meet the risk and return objectives of the Partnership while striking the appropriate balance with the needs of the entrepreneur and existing shareholder.
- We target companies that have defensible market positions, sustainable competitive advantage and unique attributes to their business model