Approach
At EGS Healthcare Capital Partners we believe it is possible to achieve venture capital-like returns by actively identifying, structuring, and monitoring a portfolio of late-stage private and emerging public companies whose risk profiles tend to be lower than typical venture companies.
We have extensive professional experience working for and serving as advisors to many large public healthcare companies, and thus tend to evaluate the prospects of emerging healthcare companies from the perspective of potential future buyers. We believe that larger public companies will increasingly rely on acquisitions of innovative emerging companies with unique, complementary, or more cost-effective products. Our investment strategy focuses on the potential returns from the private sale of portfolio companies, with boom cycles in the public or IPO markets providing an opportunity for enhanced return.
Our experience in public equity also allows us the opportunity to evaluate and selectively invest in emerging public healthcare companies (private investment in public equity (PIPEs) that exhibit many of the same growth prospects that we see in later stage private companies.
In our assessment of potential investments, we use our experience, along with the expertise of consultants and industry contacts in order to evaluate products in light of existing and potential competition. Defining the size of the markets and the potential acquirers of the product or company is of the utmost importance.
Our goal is to structure investments to maximize return while controlling risk. Except in special circumstances, we will invest at the highest level of capital structure commensurate with equity return targets. We prefer to lead transactions, and our initial investment is around $5 million per deal. We often will attract additional investment from one or more of our Limited Partners, as well as from other, unaffiliated funds which have invested in our portfolio companies.
We are active investors and will generally seek board representation. In addition we will help our portfolio companies increase their visibility with potential partners/corporate acquirers, Wall Street analysts, and the investment banking community.
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