Overview
EHMC is a Delaware limited liability company and a registered investment adviser that provides
advisory services to a portfolio of private equity funds and special purpose vehicles (collectively the
“Funds”). EHMC is led by Malcolm Kostuchenko, Matthew Thompson and Samarth Chandra.
EHMC is a thematic, mission oriented lower middle market private equity firm that seeks to build
successful and innovative companies that create a positive change in the U.S. healthcare system.
The firm provides equity capital for recapitalizations, and growth investments to companies across
three healthcare sectors: provider-based services, healthcare IT, and pharma services. As of
December 31, 2023, EHMC had discretionary assets under management of $1,181,620,599.
EHMC focuses primarily on healthcare services companies that do not require extensive capital
expenditures and generate strong free cash flow. The Funds are often the first round of institutional
equity investment in their portfolio companies, providing capital to smaller family or founder
owned-and-operated businesses that require the capital and experience of an institutional investor
to maximize their growth potential and transform their businesses into market leaders. EHMC
believes that the healthcare industry offers attractive investment opportunities that are well suited
to EHMC’s investment strategy due to the industry’s size, growth prospects, non-cyclical nature,
high degree of fragmentation and attractive long-term demographic trends.
The Funds make control investments in, or minority investments where it will have significant
influence over the governance and strategic direction of, healthcare companies that generate
typically less than $100 million in annual revenues. The Funds traditionally have invested on
average between $10 million to $75 million in each portfolio company. In addition to the Funds’
buy and build investment strategy, the Funds may also make growth equity investments (where
the Fund seeks to grow a portfolio company primarily by means
of cash investment).
EHMC will also selectively consider other types of equity-oriented transactions, including situations
where EHMC has a resource. Typically, our Funds seek liquidity for each investment within 5 years
of initial investment.
Nature of Our Asset Management Clients
EHMC generally provides investment management and administrative services to the Funds, which
are U.S. investment LPs and special purpose vehicles organized as LLCs that are not registered or
required to be registered under the U.S. Investment Company Act of 1940 (the “Investment
Company Act”). The securities of the Funds are not, and are not required to be, registered under
the U.S. Securities Act of 1933 (the “Securities Act”).
Investors in the Funds participate in the overall investment program for the applicable Fund but
may be excused from a particular investment due to legal, regulatory or other agreed-upon
circumstances pursuant to the relevant Fund’s LP or LLC agreement. The Funds or their general
partners have entered into side letters or other similar agreements with certain investors that have
the effect of establishing rights (including economic or other terms) under, or altering or
supplementing, the terms of the relevant Fund’s LP or LLC agreement with respect to such
investors.
Additionally, from time to time and as permitted by the relevant Funds’ LP or LLC agreements,
EHMC expects to provide (or agree to provide) co-investment opportunities (including the
opportunity to participate in co-invest vehicles) to certain investors or other persons, including
other sponsors, market participants, consultants and other service providers, EHMC’s personnel
and/or certain other persons associated with EHMC and/or its affiliates (e.g., a vehicle formed by
EHMC to co-invest alongside a particular Fund’s transactions). Such co-investments typically
involve investment and disposal of interests in the applicable portfolio company at the same time
and on the same terms as the Fund making the investment.