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.
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.
➔ Certain healthcare sub-sectors will outperform
✓ 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
➔ Average” healthcare sub-sector likely to experience V-shaped recovery, with potentially slight increase in price pressure
❍ Traditional pharma (with exceptions)
❍ Basic equipment and consumables
❍ Traditional critical/emergent care
❍ Traditional chronic care
➔ Select healthcare sub-sectors/players likely to fare worse
✗ 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
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.
➔ Certain healthcare sub-sectors will outperform
✓ 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
➔ Average” healthcare sub-sector likely to experience V-shaped recovery, with potentially slight increase in price pressure
❍ Traditional pharma (with exceptions)
❍ Basic equipment and consumables
❍ Traditional critical/emergent care
❍ Traditional chronic care
➔ Select healthcare sub-sectors/players likely to fare worse
✗ 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
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.
➔ Certain healthcare sub-sectors will outperform
✓ 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
➔ Average” healthcare sub-sector likely to experience V-shaped recovery, with potentially slight increase in price pressure
❍ Traditional pharma (with exceptions)
❍ Basic equipment and consumables
❍ Traditional critical/emergent care
❍ Traditional chronic care
➔ Select healthcare sub-sectors/players likely to fare worse
✗ 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