HCAP Partners Releases Annual Impact Report: Advancing Health, Well-Being & Quality Jobs

Report reveals synergy between positive social impact and strong financial returns

SAN DIEGO, April 30, 2024 /PRNewswire/ — HCAP Partners LLC is thrilled to release our annual impact report: Advancing Health, Well-Being & Quality Jobs. The report reflects on our 2023 investments, highlighting our unique approach to working with our portfolio companies and summarizing the positive impact we seek to achieve through our capital and our approach to value creation.

“Our philosophy on impact investing prioritizes ways to drive lasting change,” said Tom Woelfel, Senior Director of Impact at HCAP. “Creating meaningful and sustained impact through every stage of our investment process is central to our mission.”

Since its founding more than two decades ago, HCAP has managed more than $670 million across five funds, providing mezzanine debt and private equity for underserved, lower-middle market companies throughout the United States.

As of Q4 2023, our fourth fund – HCAP IV, LP – has invested across seventeen companies, with 72% of the capital deployed towards traditionally underserved businesses. Our fifth fund, HCAP V, LP, has also invested across twelve companies, with 57% of the capital also allocated to underserved businesses.

Key findings follow. Further details can be found in the report.

HCAP Partners’ Healthcare Impact

This year, the report takes a deeper dive into HCAP’s work in the U.S. healthcare sector.

“As stewards and champions of positive social impact, we recognize the urgent need for transformative solutions in the healthcare industry. Our healthcare and overall impact theses reflect our commitment to supporting companies that improve health outcomes and advance quality jobs for underserved communities across our nation,” said Tim Bubnack, Managing Partner at HCAP.

Despite outspending other high-income nations on healthcare, the U.S. lags behind in critical health indicators, with overall satisfaction in the healthcare system remaining notably low.

As a longstanding investor in the lower middle market, we recognize many opportunities to rectify this by investing in healthcare and technology companies that are providing products or services that expand access to care, improve quality of care, and reduce cost of care.

By supporting healthcare and technology companies such as Apprio, Chordline Health, and BetterNight – and, importantly, the people they employ and communities they serve – we can deliver solutions that address the wide range of challenges that persist in U.S. healthcare. Together, we can effectively drive business results and improve health outcomes.

The Gainful Jobs Approach™️: Our Operational Impact Framework

We focus on building quality jobs at small businesses, particularly for low-to-moderate income wage earners to foster operational excellence and achieve business success. This work is done alongside deeply committed management teams who understand and value the benefits of investing in their employees to strengthen their businesses.

Developed through collaboration with our LPs and industry thought leaders, our Gainful Jobs Approach™️ is our operational impact framework for understanding and improving job quality standards at our portfolio companies.

The key steps we apply as well as our systematic approach to impact management through the Gainful Jobs Approach™ can be found in the report.

The Worthwhile Jobs Survey

We’re excited to partner with Ellen G. Frank-Miller, PhD, founder, and CEO of the Workforce & Organizational Research Center (WORC) to launch the Worthwhile Jobs Survey™ – an evidence-based, statistically validated survey completed by portfolio company employees – to track job quality changes from workers’ perspectives.

The Worthwhile Jobs Survey™ has provided us and our portfolio companies with actionable insights that help improve job quality. We’re committed to gathering this feedback to help enhance value creation efforts with portfolio companies and inform further iterations to our investment strategy and Gainful Jobs Approach™.

Portfolio Company Exit Interviews

In 2023, we introduced interviews with portfolio company leaders as part of the process to capture lessons learned and identify opportunities for improvement when exiting an investment with a portfolio company. These exit interviews provide an opportunity to reflect on the results of HCAP’s investment. Review key findings in the report.

To learn more about HCAP, visit www.hcap.com.
To download our impact report, visit our impact page.

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/.

Media Contact:
Ro Thompson