Investment Strategy
By backing highly experienced management teams, we seek to lead fast-growing, revenue-generating healthcare companies toward success. Through our investments, we aim to improve healthcare for all ages, nationalities, and locations worldwide.
Seeking success through strategic growth equity investments in healthcare
We are healthcare specialists: this is our passion and our only business
US and European health sector
EBITDA-positive or soon to be
Revenue growth drives returns
Minority or majority positions
Our Investment Strategy & Criteria
At EW Healthcare Partners, we center our investment approach on middle-market healthcare companies. We believe healthcare stands as a substantial, resilient, and continually burgeoning sector within the economy. Contributing factors include the aging population, increasing disease burden, a rapidly growing global middle class, and the continued adoption of innovative technologies and therapies.
We carefully select companies that possess diverse avenues for revenue expansion, which may involve activities such as expanding sales operations, entering new geographical markets, acquiring complementary enterprises, and introducing innovative products.
We measure risks
- Our investment strategy prioritizes the use of senior equity securities with senior liquidation preferences, minimizing the risk of capital loss.
- We maintain a prudent approach to leverage, using a conservative level of debt in our investments.
- We focus on companies that are EBITDA-positive or demonstrate a clear path to achieving positive EBITDA.
We seek a diversified portfolio
- Our investment portfolio encompasses various sub-sectors within the healthcare industry, including pharmaceuticals, medical devices, and technology-enabled services.
- The majority of our investments target companies in the pharmaceutical and medical device domains, particularly those with patented, proprietary products.
We are selective
- We have a successful track record of sourcing promising healthcare companies with robust growth potential.
- Our extensive industry contacts and deep domain expertise contribute to our ability to identify high-potential investment opportunities.
- We maintain a rigorous selection process that ensures we invest in the most attractive opportunities.
We actively develop opportunities
- Our commitment extends beyond capital investment; we actively engage with our portfolio companies to add value through our industry knowledge and resources.
- Leveraging our domain expertise and industry relationships, we aim to contribute to the growth and success of our portfolio companies.
Pharmaceuticals
Driven by aging demographics, increasing insurance coverage, and innovation
The demand for pharmaceuticals is expected to escalate. Certain subsegments, particularly specialty pharmaceuticals and consumer driven medicine, are anticipated to experience accelerated growth. This trend highlights the immense potential for investment within this thriving market.
MedTech
Driven by a focus on healthcare outcomes and cost-effectiveness
The largest segments within the MedTech market are expected to be cardiovascular medical devices, medtech CDMOs, in vitro diagnostics and surgical robots. These areas hold immense potential for innovation and investment, as they cater to critical healthcare needs. Additionally, neurology is predicted to be the fastest-growing segment, indicating significant opportunities for groundbreaking advancements and market expansion.
Tech-Enabled Services
A growing segment in the healthcare industry
The aging population, coupled with evolving regulations, is expected to drive the growth of tech-enabled services in healthcare. These dynamics are likely to increase the use of advanced technologies through better monitoring, data analysis and personalized treatment options.
Global macro trends support healthcare investing
We believe larger-scale economic and social trends worldwide create a conducive environment for investing in the healthcare sector.
These trends encompass factors such as demographic shifts, regulatory changes, technological advancements, and growing healthcare needs.
Together, we believe they foster opportunities and growth potential within the healthcare industry.
We believe change creates opportunities in developed markets
Healthcare is one of the largest and most lucrative segments of the economy in the United States
An aging population, increasing disease burden, growing middle class, and adoption of technologies create promising growth prospects
Knowledge and technology play pivotal roles in driving healthcare innovation by fostering new product development, therapies, and companies
Common questions
Why invest in the healthcare industry?
Investing in the healthcare industry is compelling due to:
- Steady Income and Profits: Established healthcare firms enjoy reliable income from recurring revenues, often shielded by patents, with above-average profitability.
- Innovation Driving Growth: Continuous development of better, cost-effective treatments fuels growth and attracts new companies.
- Vibrant M&A Environment: Active mergers and acquisitions provide growth opportunities and solid exit options for fast-growing companies.
- Specialized Expertise Required: Healthcare’s complexity demands domain knowledge for successful investment.
- Diverse Investment Options: The industry’s fragmentation offers various sectors to invest in, appealing to different strategies and risk tolerances.
What are growth equity investments?
Growth equity investments refer to a type of investment strategy where investors provide capital to rapidly growing companies in exchange for a significant ownership stake. These investments are typically made in companies that have already established a solid foundation and are looking to expand their operations, enter new markets, or scale their business.
What’s the difference between growth equity and private equity?
The main difference between growth equity and private equity lies in the stage of the company’s development. Growth equity investments typically focus on companies that have proven their business model and are experiencing rapid growth. Private equity firms typically invest in companies to improve their operations through strategies such as restructuring or selling assets.
Where are EW Healthcare Partners' investment team members located?
EW Healthcare Partners’ investment team members are located in Houston, New York, and London. We are a global healthcare-focused investment firm and are proud to have a presence in multiple regions, including North America and Europe. Our team operates in different locations to identify and support healthcare companies with growth potential within these geographies.