Report reveals synergy between positive social
impact and strong financial returns
SAN
DIEGO, April 30, 2024 /PRNewswire/ -- HCAP
Partners LLC is thrilled to release our annual impact report:
Advancing Health, Well-Being & Quality Jobs. The
report reflects on our 2023 investments, highlighting our
unique approach to working with our portfolio companies and
summarizing the positive impact we seek to achieve through our
capital and our approach to value creation.
"Our philosophy on impact investing prioritizes ways to drive
lasting change," said Tom Woelfel,
Senior Director of Impact at HCAP. "Creating meaningful and
sustained impact through every stage of our investment process is
central to our mission."
Since its founding more than two decades ago, HCAP has managed
more than $670 million across five
funds, providing mezzanine debt and private equity for underserved,
lower-middle market companies throughout the United States.
As of Q4 2023, our fourth fund – HCAP IV, LP – has invested
across seventeen companies, with 72% of the capital deployed
towards traditionally underserved businesses. Our fifth fund, HCAP
V, LP, has also invested across twelve companies, with 57% of the
capital also allocated to underserved businesses.
Key findings follow. Further details can be found in the
report.
HCAP Partners' Healthcare Impact
This year, the report takes a deeper dive into HCAP's work in
the U.S. healthcare sector.
"As stewards and champions of positive social impact, we
recognize the urgent need for transformative solutions in the
healthcare industry. Our healthcare and overall impact theses
reflect our commitment to supporting companies that improve health
outcomes and advance quality jobs for underserved communities
across our nation," said Tim
Bubnack, Managing Partner at HCAP.
Despite outspending other high-income nations on healthcare, the
U.S. lags behind in critical health indicators, with overall
satisfaction in the healthcare system remaining notably low.
As a longstanding investor in the lower middle market, we
recognize many opportunities to rectify this by investing in
healthcare and technology companies that are providing products or
services that expand access to care, improve quality of care, and
reduce cost of care.
By supporting healthcare and technology companies such as
Apprio, Chordline Health, and BetterNight – and, importantly, the
people they employ and communities they serve – we can deliver
solutions that address the wide range of challenges that persist in
U.S. healthcare. Together, we can effectively drive business
results and improve health outcomes.
The Gainful Jobs Approach™️: Our Operational Impact
Framework
We focus on building quality jobs at small businesses,
particularly for low-to-moderate income wage earners to foster
operational excellence and achieve business success. This work is
done alongside deeply committed management teams who understand and
value the benefits of investing in their employees to strengthen
their businesses.
Developed through collaboration with our LPs and industry
thought leaders, our Gainful Jobs Approach™️ is our operational
impact framework for understanding and improving job quality
standards at our portfolio companies.
The key steps we apply as well as our systematic approach to
impact management through the Gainful Jobs Approach™ can be found
in the report.
The Worthwhile Jobs Survey
We're excited to partner with Ellen G.
Frank-Miller, PhD, founder, and CEO of the Workforce &
Organizational Research Center (WORC) to launch the Worthwhile Jobs
Survey™ – an evidence-based, statistically validated survey
completed by portfolio company employees – to track job quality
changes from workers' perspectives.
The Worthwhile Jobs Survey™ has provided us and our portfolio
companies with actionable insights that help improve job quality.
We're committed to gathering this feedback to help enhance value
creation efforts with portfolio companies and inform further
iterations to our investment strategy and Gainful Jobs
Approach™.
Portfolio Company Exit Interviews
In 2023, we introduced interviews with portfolio company leaders
as part of the process to capture lessons learned and identify
opportunities for improvement when exiting an investment with a
portfolio company. These exit interviews provide an opportunity to
reflect on the results of HCAP's investment. Review key findings in
the report.
To learn more about HCAP, visit www.hcap.com.
To download our impact report, visit our impact page.
About HCAP Partners
HCAP Partners is a diversely
owned private equity firm specializing in providing mezzanine debt
and private equity for underserved, lower-middle market companies
throughout California and the
Western United States. The firm
seeks to invest $3 million to
$25 million in established businesses
generating between $10 million and
$100 million in revenues in the
healthcare, software, services, and manufacturing industries. HCAP
Partners has invested in over 60 companies since its founding and
through ongoing, active engagement with portfolio companies
provides value-added resources to help optimize performance and
increase enterprise value. The firm has been an ImpactAssets 50
fund since 2014 and, through its Gainful Jobs Approach™, works to
facilitate a positive impact on underserved businesses, their
employees, and their communities through active portfolio
engagement. For more information, please visit
http://www.hcap.com/.
Media Contact:
Ro Thompson
212-840-0017
376878@email4pr.com
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