Healthcare Investing for the Post-COVID Era

Longfellow is a healthcare-focused lower middle market investment firm.  We have a proven track record helping innovative companies navigate a complex healthcare environment.

 
 
 
 

Longfellow believes that the COVID-19 pandemic has fundamentally accelerated the healthcare’s future and unleashed a wave of change. 

And within this new landscape, we aim to invest in teams and companies positioned to win.

 
 

Long-Term Orientation:

Unlike other private equity firms, we take a long-term approach to building companies. 

We are not interested in the quick flip; we are not focused on raising the next fund.  We want to build value over a long period of time. 

Both Longfellow’s philosophy and its structure have been informed by the wisdom of Warren Buffet and Charlie Munger, and our vision is to create a healthcare-focused mini-Berkshire Hathaway.  Our circle of competence is healthcare, and our focus is creating long-term value.

 
 

Investment Criteria:

 

We back founders and managements team operating companies within healthcare’s lower middle market.  We don’t invest in start-ups, and we don’t invest in sclerotic, entrenched players. 

Our companies have proven business models and a track record of success who are seeking to take their companies to the next level.

  • Transaction Size

    $25-$75M equity per investment platform

  • Company Stage

    Revenue-generating ($10M+) and proven, profitable businesses

  • Company Growth Profile

    Growing at 5x GDP or more (10-15%+ growth)

  • Transaction Type

    Majority ownership, with very selective minority positions

 
 

Healthcare Sectors of Interest:

The COVID-19 pandemic dramatically accelerated the future of healthcare and unleashed a wave of change. 
Some traditional healthcare companies will struggle dealing with these changes. 
Longfellow invests in healthcare companies that are poised to win in the new post-COVID environment. 

 
 
 

  • ✓ Digital healthcare (e.g., telehealth, e-pharmacy, remote trials)

    ✓ Life sciences tools and diagnostics players that (i) generate new biological insights that inform treatment, or (ii) enable virtual care

    ✓ Value-based care (outpatient, low-cost, capitation)

    ✓ Contract manufacturing organizations with local footprints

  • ❍ Traditional pharma (with exceptions)

    ❍ Basic equipment and consumables

    ❍ Traditional critical/emergent care

    ❍ Traditional chronic care

  • ✗ Highly expensive/speculative technology with limited value proof

    ✗ Highly elective procedures (likely price pressure and shift to ASCs)

    ✗ Challenger players without clear differentiation

    ✗ Pharma contract development and manufacturing organizations with challenging supply chains