HCAP Partners Successfully Exits Leading Neuromonitoring Company
Investment Showcases Measurable Value Creation and an Impactful Investment Strategy
SAN DIEGO, CA (Aug 15, 2023) – HCAP Partners, a California-based private equity firm and nationally recognized impact investor, is pleased to announce the successful exit from its strategic investment in a prominent neuromonitoring company (“the Company”). Terms of the investment were not disclosed.
Founded in 2010, the Company is a leading provider of neurotelemetry and remote neurological patient monitoring services to hospitals, healthcare systems, physician practices, and in the home. The Company’s services assist in the neurological assessment of adult, pediatric, and ICU patients in order to monitor real-time brain activity and interpret potential seizure risks.
HCAP Partners invested in the Company in 2019 to support its next phase of growth. During the investment period, revenues quadrupled and EBITDA increased by 2.5 times. The Company's workforce grew from 54 employees to approximately 256 as it developed the infrastructure, processes, and systems to ensure sustained success. In addition, the Company built out a client base of some of the leading health systems, healthcare providers, and physician practices in the country, enabling it to deliver care during a pandemic environment.
This investment was a great case study on HCAP’s approach to value creation and leveraging our workforce development approach through the Gainful Jobs Approach™️ to drive growth in the company and increase access to care in neurology and critical care areas. HCAP worked closely with the Company's management team to implement a broad-based stock option plan, an annual employee bonus pool, and a transaction bonus as part of the exit plan, enabling employees to participate in the value creation they had helped achieve.
“HCAP Partners' strategic investment provided the fuel for the Company’s growth and their hands-on approach and guidance resulted in a remarkable exit,” commented Brad Westcott, founder and former CEO of the Company. “This success story underscores the tangible outcomes of a well-executed investment strategy.”
"This investment was a great example of HCAP's approach to value creation and how the Gainful Jobs Approach™ helps employees realize additional economic outcomes from their hard work,” highlighted Tom Woelfel, HCAP Partners' Senior Director of Impact.
“We are thrilled to have partnered with Brad and his team,” added Hope Mago, Partner at HCAP Partners. “We not only provided capital to support scaling the business but also implemented our impact approach, which created significant value. The company leveraged this growth for a successful exit through a sale and we are pleased to have been part of this journey.”
HCAP’s Hope Mago led the transaction and served as a board member of the Company. HCAP Partners’ Managing Partner Tim Bubnack served as an observer and HCAP Senior Associate Jessica Kim contributed significantly to enhancing the company's value and managing its portfolio.
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/.
