The Adaptive Health Capital proprietary fund provides financial and strategic support to healthcare entrepreneurs with a focus on opportunities driven by healthcare transformation. Combining both hedge fund and private equity models, we are the first Southern California-based fund focused on healthcare innovation and next generation healthcare.
Our founders are seasoned entrepreneurs and executives with a track record of leadership at the nexus of healthcare strategy and business challenges. Adaptive Health Capital grew out of the vision of Harry Nelson and Rob Fuller, the co-chairs of the investment committee, who combine over four decades of healthcare industry experience. For Nelson, the founder of a suite of healthcare service organizations that have become a healthcare innovation “clearing house” in Southern California, the Fund extends his vision of problem-solving, connecting innovators and capital, and leading healthcare and life sciences companies down towards strategic growth.
For Rob Fuller, the Fund draws on his deep healthcare turn-around experience, which extends to redesigning hospital clinical operations and primary care delivery and integrating clinical informatics. In assembling the rest of the Fund’s investment committee and leadership team, Nelson and Fuller rounded out the team with proven healthcare leaders with distinctive perspectives who bring unique insight into the regulatory landscape, “first look” access to a large pool of potential investments, and deep experience in healthcare finance.
The Fund came to realization under the leadership of fund manager Larry Gill who brings 15 years of institutional investment and fund management experience, and Hillel Kamionski, who brings extensive experience in hedge fund and private equity fund accounting, operations, compliance and investor relations.
As the name Adaptive Health Capital suggests, our founders provide support for adaptation to the systemic changes and realignment underway in the healthcare industry. The “fee-for-service” era of volume-based reimbursement is waning and being supplanted by value-based care. The competitive landscape is shifting towards new care settings — such as aging “in place” at home – and a growing reliance on non-physician practitioners. And technology and consumer demands are driving towards lower-cost, technologically-based solutions to deliver care and make sense of healthcare data. The results include disruption and financial distress for many companies, creating investment opportunities for the Fund.
Adaptive Health Capital addresses these opportunities through two distinct funds: Venture Equity, which makes early-stage equity investments in high-growth Portfolio Companies, and the Private Lending Fund, which takes debt and equity positions in more mature Portfolio Companies seeking a catalyst to implement growth strategies.
Venture Equity focuses on funding the most promising, scalable new ideas, looking to fill post-angel, pre-venture needs for early-stage, revenue-positive healthcare companies in four verticals: aging-in-place, telehealth, digital health, and care coordination. The Private Lending Fund focuses on opportunities to catalyze growth in mature healthcare organizations, providing creative loan/equity hybrids and other bridge financing to relatively mature healthcare companies. In all cases, we look for active investment opportunities to utilize our expertise and industry network to drive investments forward.
Through its investment funds and unique approach, Adaptive Health Capital seeks to fill a void in the Southern California investment and healthcare innovation marketplace. Our story will continue to unfold as, together, we realize the vision of Southern California as a hub of healthcare innovation investing.