Healthcare is a large and growing industry, continuing to benefit from favorable economic and demographic trends. Healthcare is tightly regulated with many sub-sectors, which in some cases are highly consolidated and in others highly fragmented. The inter-relationships between regulators, healthcare providers, payers, and patients/consumers are complicated and can be difficult to navigate. For an experienced and skilled investor, Nautic believes these dynamics create compelling opportunities to invest.
As with other regulated industries, we believe experience is the key differentiator of investor know-how. There are several recurring and complex themes that must be understood in order to successfully invest in the healthcare arena, including:
- Value proposition between payers, providers, and patients
- Provider reimbursement
- Employer-paid healthcare dynamics
- For-profit versus not-for-profit considerations
- Regulatory framework
Nautic’s long history of healthcare investing provides invaluable expertise in analyzing, understanding, and reacting to changes in these themes.
Further, we have developed an extensive network of healthcare executives, consultants, and advisors. These relationships provide an advantage in: uncovering and evaluating new investment opportunities, attracting new talent to portfolio companies, expanding portfolio companies’ customer bases, sourcing accretive add-on acquisitions for platform investments, and exiting to strategic acquirers.