The Private Lending Fund catalyzes growth and turn-around opportunities in mature Portfolio Companies. We utilize a combination of debt financing structures and equity investments, along with the expertise of Adaptive Health Capital’s leadership, to deliver “smart money” to implement growth strategies.
Many of the Private Lending Fund’s investment targets are facing financial stress in the traditional health provider market, such as acute care hospitals, post-acute care facilities, pharmacies, and laboratories. As a growing number of these providers employ adaptive strategies, such as diversification of revenue streams through acquisition and consolidation or implementation of technological “fixes,” there is an enormous need for capital investment that is largely unmet by traditional lending and investment sources. The challenge is frequently the need for investment capital to fund on short notice, with atypical repayment or equity exit horizons and variables that are difficult to assimilate into the template-dominated risk analyses commonly made by commercial bankers or institutional investors.
Adaptive Health Capital’s perspective is that this industry challenge offers an opportunity to profit on needs that cannot be met by those who lack of nuanced understanding of the regulatory and business landscape. In some cases, financial and marketplace pressures will offer significantly discounted valuations for healthcare organizations lacking the ability to attract more traditional sources of capital. In other cases, identified revenue opportunities created by shifting reimbursement strategies or regulatory developments may offer promising opportunities. In all cases, the Private Lending Fund seeks investments that catalyze material improvement in Portfolio Company operations, profitability, and future prospects.