What We Look For


Investment and Partnership Criteria

Overview

We seek to partner with highly capable entrepreneurs whose talents and experience will translate into successful and meaningful companies. Potential portfolio companies should meet the following general investment criteria:

  • Experienced “A” level management teams with a record of demonstrable success
  • Product or service offering with a sustainable competitive advantage
  • An addressable market exceeding $500,000,000 and growing rapidly
  • Annual revenues of $3,000,000 or more and generally up to $30,000,000
  • Profitable or achieving profitability within 18 months
  • Geographically located in the Texas to Illinois to New England and Florida regions; West Coast companies will not be considered as primary investment candidates

Stage of Investment

In order to take full advantage of our expertise in the healthcare and business services sectors, we focus on growth stage opportunities where BMP can act as a lead investor and partner. We seek companies that have existing customers and products or services operating in markets where we have a high degree of confidence. On occasion we will invest in deals led by other high quality private investors who seek our active involvement to enhance a businesses’ growth strategy.

Active Investment Partner

We typically serve as the lead investor in most transactions and are often the first institutional investor in the companies we finance. Board of Directors representation is important to us. This participation enables us to help develop growth strategies with our companies early in their development. We rarely become involved in the day-to-day management of our portfolio companies. Rather, we serve as advisors, assisting management with the development of business and financial strategies, preparations for private and public financing events, and the design of targeted merger and acquisition programs. The results of this approach have been highly rewarding.

Preferred Investment Size

We seek to invest up to $15,000,000 in any single portfolio company. Typical first round investments range from $3,000,000 to $10,000,000, with follow-on financings often doubling the original capital commitment. In select cases, we have made initial investments of as little as $1,000,000 with the expectation that we will significantly increase our investment through later commitments.

Our Firm – What We Look For

US healthcare spending is projected to grow from $3.2 Trillion in 2015 to $5.4 Trillion in 2024, when it will represent approximately 20% of GDP.  The average annual growth rate over this period is expected to be nearly 6% which is 17% faster than the annual GDP growth.  These cost increases are driven by the expansion of population coverage under the Affordable Care Act, the aging of the Baby Boomer generation, improved economic growth, as well as  the increased use of new medications to treat chronic conditions.  Other factors increasing demand are better consumer understanding of treatment options and corresponding outcomes.

Information technology advances will affect all areas of pre-clinical and clinical trials, including patient recruitment and selection, data capture, data analysis and post market surveillance. Adverse event detection, reporting and analysis will also be impacted. Superior outcomes characterization will yield more effective treatment protocols and clinical pathways. Soft tissue imaging, expert remote diagnosis, remote treatment, remote second opinion and data-based case management will all be advanced to control costs and improve outcomes. Our specific areas of interest include:

  • Pharmaceutical services and outsourcing
  • Private-pay components of healthcare services (dental & medical)
  • Long-term care in private pay market
  • Consumer-driven health plans
  • Revenue cycle services (coding, billing, etc.)
  • Predictive modeling: data and analytics for identifying high-risk patients for more effective care management
  • Disease management: a system of coordinated healthcare intervention and communication for populations with conditions for patient self-care efforts are significant
  • HEDIS reporting: HEDIS is a set of standardized performance measures designed to ensure that purchasers and consumers have the information they need to compare the performance of managed health care plans.

Healthcare IT

Examples of investments that we have previously made in this sector include the following companies:

  • eMed Technologies: Provider of software, communications infrastructure products and Internet services products to radiology professionals.
  • Galt Associates: Specialist in pharmacovigilance support and Web-based compliance and analysis solutions for the pharmaceutical industry.
  • MedAptus: Developer of customized workflow applications for wireless, handheld technologies to healthcare providers.
  • PAREXEL International: One of the world’s largest contract pharmaceutical outsourcing organizations.
  • PHT Corp: PHT is a private provider of technology and management systems to support clinical trial research.
  • Proteome: Provider of a variety of protein and genomic research services to the pharmaceutical industry.

Business Services & Technology

Examples of investments that we have previously made in this sector include the following companies:

  • Infotrieve: A leading provider of outsourced research information services to corporations, academic institutions and professionals, serving scientific, technical and medical research.
  • Nexidia: The leading provider of highly scalable, highly accurate audio mining and speech analytics software.
  • Odyssey Logistics: A full service outsourced logistics management service provider targeting the chemicals and process industries.