Peloton believes that lower middle market companies in healthcare continue to provide attractive investment opportunities as a result of the industry’s ongoing payment model transformation, innate complexities and evolving regulatory environment. We seek to identify companies and management teams that have the value proposition, executive leadership and strategic vision to become segment leaders in healthcare.
Peloton will focus on investments in companies across the major subsectors of healthcare – services, clinical products and IT/outsourced services – that we believe have several of the following characteristics:
- Proven Business Model
Demonstrated market adoption, typically represented by $20 - 200 million in revenue and/or $(5) - 10 million of EBITDA at investment.
- Market-tested value proposition
Provides higher quality care and/or lowers overall healthcare system costs.
- Substantial growth opportunity
Well‐positioned for transformational revenue and profit growth (3-5x over the life of the investment).
- Accomplished CEO & management team
Results‐oriented culture with accomplished and experienced management.
- Sector where Peloton believes it can add meaningful value
Peloton’s team has successfully invested in similar businesses and/or has access to experts and customers to help the business achieve its growth objectives.
Peloton matches the structure of its investment to meet the company’s needs. We are comfortable investing in a control or minority position, however, we are typically the largest institutional shareholder with material governance rights when taking a minority position.