Our Approach
We invest in overlooked healthcare businesses with resilient fundamentals and untapped potential, creating lasting value through growth financing and operational support.
Undervalued SMEs
Underrepresented small- and medium-sized enterprises (SMEs) have long been perceived as less valuable than their traditional counterparts, largely due to systemic barriers in capital markets. They face higher costs of capital, with Black and Hispanic business owners paying average interest rates of 9.8% and 9.6% respectively, compared to the 6.7% average interest rate of their white peers.
Underrepresented SMEs receive lower valuations and fewer equity investments, with minority-owned firms reporting significantly lower average equity and loan amounts compared to non-minority firms, even when controlling for firm characteristics.
The “Black Tax”
Undervalued SMEs receive growth financing at lower rates and in lower amounts, even when controlling for firm size and creditworthiness.
Blind-spot discount
These underrepresented SMEs are discounted by the market. With over twenty years of combined experience working directly with underrepresented SMEs, we understand this as a blind-spot. Markets underappreciate their value due to lack of understanding of the systemic barriers these SMEs face.
Underrepresented business owners face higher costs of capital due to the historic structuring of the banking system, not inherent flaws in their business model. They often feature outdated operational systems not because of management ineptitude, but because of their lack of proximity to experienced operators and professional support systems.
At Haven Point Capital, we generate alpha by exploring the arbitrage gains from closing capital access gaps and increasing operational efficiencies in underrepresented SMEs. We acquire assets at lower prices due to the blind-spot discount, implement our proprietary playbook for operational best-practices, and exit at market rates.
Our healthcare focus
The demand side for healthcare is structurally expanding due to the increasingly aging US population. Federal actuaries project U.S. health spending growth will outpace GDP through the next decade, increasing to 20% of GDP by 2033 from 17% in 2023.
Overlooked entrepreneurs are heavily concentrated in the healthcare space due to its stability. Healthcare and social assistance accounted for over 25% of Black-owned employer firms in 2021. Among other minority-owned healthcare enterprises, these SMEs are potential viable targets for Haven Point Capital.
Our fund growth strategy
Haven Point Capital generates value by acquiring growth capital for portfolio companies at more competitive rates, closing the blind-spot discount. We then implement operational best-practices to increase enterprise value at sale.