Pharos Capital Partners

Pharos Capital Partners is a distinctive private equity firm with a dedicated focus on the healthcare sector. Uniquely physician-founded, the firm leverages deep industry expertise to identify and support growth-oriented healthcare companies. Headquartered in Dallas, Texas, with an additional office in Nashville, Tennessee, Pharos specializes in growth equity, recapitalizations, buyouts, and buy-and-build strategies. Their investment thesis centers on businesses that can benefit from strategic capital and operational guidance within the complex healthcare landscape.

The firm targets companies exhibiting strong growth potential and established profitability. Specifically, Pharos seeks out businesses with enterprise values typically ranging between $20 million and $150 million, and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) generally between $3 million and $15 million. This strategic focus allows them to engage with a diverse range of healthcare services, medical device, pharmaceutical, and healthcare IT companies. Pharos Capital Partners is prepared to deploy significant capital, with typical equity investments per transaction falling between $20 million and $70 million.

Pharos Capital Partners demonstrates substantial financial capacity, managing over $1.2 billion in assets under management. This robust capital base underscores their ability to execute on their investment strategy and support portfolio companies through various growth phases. The firm has successfully raised multiple funds, including its most recent, Pharos Fund V, which closed at $400 million in 2021, following Pharos Fund IV which closed at $365 million in 2017. These successful fundraises reflect investor confidence in Pharos's specialized approach and its track record of value creation within the healthcare industry.