Pharos is primarily seeking to provide equity capital to established businesses based in the United States. Our investment preferences include the following:

• Provide growth and later stage capital for businesses at or near cash flow break-even
• Opportunistic investing across industry sectors, with particular focus on healthcare, business services and technology
• Invest $5 to $20 million in staged investing
• Funding undercapitalized businesses in underserved regions across the nation
• Lead or co-lead a financing along with other institutional investors

When evaluating an investment opportunity, we also consider the following criteria:

• Management teams must possess significant experience in the company’s industry and a proven track record of executing a strategic business plan.
• At the time of investment, we prefer our portfolio companies to be at or near cash flow break-even, such that the current financing will carry the company to a cash flow positive position.
• We seek to make investments in businesses that have defensible market positions (e.g. product leadership, superior customer service, brand name etc.), predictable exposure to risks (e.g. economic, market or technology) and attractive growth prospects either internally through core revenue growth or externally through acquisitions.
• We prefer portfolio companies that offer multiple exit opportunities. These exit strategies may involve a financial buyer, an initial public offering, a recapitalization or a sale to a strategic purchaser.
• We tailor the deal structure of each investment to meet the risk and return objectives of the Partnership while striking the appropriate balance with the needs of the entrepreneur and existing shareholder.