Investors In The Healthcare Economy
Over the next 10-20 years, investment opportunities in the healthcare economy will be driven by an imperative to create and deploy business and technological solutions to the U.S. healthcare crisis. We believe that innovations necessary to bend the trend will be addressed by private venture-backed companies, which have long been at the forefront of the next generation of ideas. New solutions will require a focus on productivity and value for the healthcare dollar, both of which have long been overlooked in the healthcare industry.
Psilos is expert at identifying and investing in healthcare services, healthcare information technology and medical technology companies geared toward improving the competitiveness, quality, accountability and productivity of the healthcare economy. With three funds and over $580 million under management, we have deployed a consistent healthcare investment model since our founding. This has resulted in a markedly distinguished portfolio of companies and enabled us to deliver superior returns to our investors.
Psilos differentiates its investment approach in the following ways:
• We maintain a sole focus on healthcare investing, and our investment team brings a deep and broad range of healthcare expertise as operators and financial professionals.
• We recognize that the increasing demand for healthcare products and services brings with it an imperative for both higher quality and lower cost of care built around business models that simultaneously align the economic incentives of healthcare’s three major constituencies: payers, providers, and patients.
• We invest at a stage when technical, clinical, regulatory and proof of concept risk is mitigated and the focus is on market and business execution risk.
• We take an “ownership” view of our investments, acting as a lead investor and acquiring a significant stake in all of our portfolio companies. This bias towards meaningful ownership leads us to commit a significant amount of capital to each portfolio company and to establish a long-term partnership with management to ensure maximum value creation.
• We seek out management teams that welcome our active ownership orientation. In return, we offer consistent added-value through our deep healthcare industry knowledge and understanding, commitment as active board members and advisors, assistance in the development of marketing and operational strategies, connections in the healthcare marketplace, ongoing capital support, and thoughtful creation of exit strategies that complement the ambitions of management and other investors.
We believe our differentiated approach results in a portfolio of transformative healthcare companies run by superb entrepreneurs where we are able to contribute meaningfully to a successful outcome. Our healthcare investment returns to date, which consistently place us in the top quartile among our peers, demonstrate the efficacy of our approach.