Investment Criteria

Our strategy leverages an extensive hospital system and health plan network of relationships to target attractive market segments, to identify and evaluate investment opportunities, and to support the growth of our portfolio companies.

With more of our own money at risk than any of our limited partners, we are primarily motivated by generating attractive financial returns from our investments.

Attributes that are common among deals we find attractive include the following:

HEP has a strong preference for backing seasoned operators who have grown and successfully exited prior companies.
We generally prefer companies that are profitable or have a very clear path to profitability within 12 to 18 months. We do not invest in pre-revenue companies.
We typically invest $5 million to $15 million per portfolio company, but have the ability to fund larger deals with co-investors.
We prefer a significant minority or occasionally majority ownership position. Together with our co-investors, we will generally have a majority interest.
Our portfolio companies’ customers are generally hospital systems and / or health plans.
We target healthcare services and healthcare information technology companies with a particular interest in the following sectors:

  • ACO-focused care coordination
  • Business intelligence and analytics
  • Clinical decision support
  • Consumer engagement
  • Interoperability and exchange of information
  • Management of chronic conditions
  • Telecare and remote monitoring
  • Outsourced services
  • Physician employment models
  • Revenue cycle management

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