Q: How does Galen work with management teams? A: Galen’s ‘collaborative capital’ philosophy places a premium on working strategically with our management teams to help build healthcare businesses into successful commercial enterprises. As part of our evaluative process, we look for companies that have strong management teams, with proven track records, and work closely with them as a team to drive equity growth. Our goal is to work together as a team to build companies that last.
Q: What healthcare sectors do you focus on? A: We look specifically for healthcare businesses specializing in healthcare information technology (HCIT) and services, medical devices and technology and specialty pharmaceuticals.
Q: What kind of grow equity investments does Galen make? A: We focus on healthcare, primarily companies that focus on proprietary information technology and services, medical technology and specialty pharmaceuticals.
Q: What makes Galen different from other healthcare private equity investment firms? A: Our focus on healthcare has enabled us to build significant expertise. Our team understands healthcare–the economics, the regulatory environment, the thought leaders, the operational requirements, and all the other aspects of the industry needed to recognize companies with potential and understand how to turn that potential into results.
Q: Why do you focus specifically on investments in growth capital for healthcare companies? A: Healthcare is America’s largest industry, growing and evolving constantly to meet the rising demands of an aging population. Healthcare business models of necessity must adapt and change to embrace new management and operational techniques, new technologies and other tools needed to deliver the greater value consumers and society demand. Companies at the forefront of this effort present attractive investment opportunities.
Q: Why focus only on certain segments of the healthcare market? A: Galen takes a highly disciplined approach that focuses on select areas of the healthcare market. We concentrate on areas in which proprietary products and services can create sound business opportunities. By maintaining this disciplined focus, we build the knowledge and expertise in those specific areas that we can leverage with our management teams to build highly profitable, sustainable businesses.
Q: Does Galen Partners focus on a particular investment stage? A: Our goal is to find healthcare companies in traditional and emerging growth segments, with an emphasis on mid-to-late stage financing. Galen seeks platform companies with a proprietary product or service that have attained a revenue run-rate above $10 million. We look for healthcare companies with a significant market position and near-term prospects for positive cash flow.
Q: Does Galen look for companies with a specific value proposition? A: Galen seeks companies with a proprietary product or service serving a recognized healthcare market need. Our goal is to identify companies that have demonstrated the potential value of such products or services, most often through their ability to generate repeated customer sales.
Q: How important is growth potential in your consideration of investments opportunities? A: Our focus is healthcare growth equity. We look for companies with superior growth prospects, either organically or through acquisition, or both.
Q: What about co-investment? A: Galen’s growth-oriented portfolio offers limited partners direct investment opportunities in privately placed equity, mezzanine debt and senior debt. Our portfolio has generated more than two dozen co-investment opportunities to date, from those of less than $50 million to some in the $100-250 million range.
Q: What is the size of a typical Galen transaction? A: While we typically invest $10 to $30 million of our fund's capital in transactions, we have led transactions requiring upwards of $100 million of equity. In such cases we rely on our prestigious Limited Partners and growth equity network to build strong, unified investment syndicates.
Q: What types of securities do you invest through? A: Galen's healthcare growth capital investments are typically convertible preferred equity securities with an initial placement of at least $10 million.
