BelHealth seeks to make investments in private and public lower middle market companies within the healthcare sector. These investments will generally be equity stakes in such companies, although the Fund may also use other structures such as convertible debt in an effort to mitigate or minimize risks where the BelHealth Team feels it is appropriate.
In particular, the Fund will typically invest $10-25 million per investment in companies with:
- Enterprise Value $10-60 million
- Revenue $10-60 million
- EBITDA $2-7 million with potential to improve operating margins;
- Long Term Competitive Advantages in an attractive potential market whether due to size, growth prospects, or competitive landscape; and
- Profitable exit opportunity within 3 to 5 years from the date of investment. The key elements to the Fund’s differentiated strategy include:
BelHealth targets companies with certain characteristics:
- Recurring revenue model
- High margins
- Diverse customer base
- Low regulatory oversight
- Modest technology risk
BelHealth will not consider companies that have yet to generate revenue, depend heavily on government reimbursement, market “commodity” products or services or require significant capital investment.