Our Approach
We invest exclusively in healthcare companies that serve communities where demand for care far exceeds supply. This is not a parallel impact strategy. It is the core of our investment mandate.
Investment Thesis
At Pharos Capital Group, we have discovered that some of the most compelling investment opportunities in healthcare exist where others are not looking.
Across the United States, entire communities, from rural areas to urban centers to tribal nations, remain structurally underserved by the healthcare system. These are not marginal markets. They are large, persistent, and growing segments of the population where demand for care far exceeds supply.
Every dollar we deploy is evaluated through a single lens: does this investment meaningfully reduce healthcare disparities while creating long-term
enterprise value?
We believe the answer to both can, and should, be yes.
Investing Where It Matters Most
Our definition of underserved is deliberately broad and grounded in reality. It includes patients in rural and remote regions, communities with limited provider access, populations reliant on Medicaid or Medicare, and individuals facing systemic barriers to care.
These markets are often inefficient and undercapitalized. Companies operating within them tend to be smaller, less intermediated, and overlooked by larger investors. As a result, they present attractive entry points for disciplined capital paired with deep sector expertise.
Pharos has spent decades building the relationships, operating capabilities, and domain knowledge required to invest effectively in these environments.
We are not tourists in these markets. We are long-term participants with a clear understanding of both the risks and the opportunities.
HOW WE INVEST
$25-50M
Per platform investment
$10M
Minimum revenue
$2M
Minimum EBITDA
20%+
Growth rate target
Healthcare Sectors
Chronic disease management
Behavioral health
Medication management
Diagnostic technology and early detection
Medical devices for chronic disease
Social determinants of health
Home-based, mobile, and telehealthcare
HOW WE EVALUATE
01
We make control investments in healthcare companies that reduce healthcare disparities and possess attractive growth prospects.
02
We do not target pre-revenue investments in life sciences, pharma, or biotech.
03
We back companies with professional management teams or supplement with our network of healthcare operators.
04
We prefer companies offering multiple exit opportunities.
05
We tailor deal structure to balance partnership risk/return objectives with entrepreneur needs.
06
We target companies with defensible market positions and durable revenue.
A Patient-Centered Model
Healthcare is not a conventional industry, and we do not approach it as one.
We believe that sustainable value in healthcare is created by improving the health of patients. Businesses that deliver better outcomes, expand access, and operate efficiently are positioned to grow, scale, and generate durable returns.*
We focus on companies that bring care closer to the patient: home-based services, telemedicine, behavioral health platforms, diagnostic innovation, and community-based care models.
Impact as a Driver of Performance
We do not view impact and returns as competing priorities. We view them as mutually reinforcing.
Companies that serve underserved populations operate in markets with strong unmet demand and limited competition. When executed well, we believe these businesses can scale rapidly, deepen their community presence, and build defensible positions over time. This is not incidental to our strategy. It is central to it.
What Sets Us Apart
Your mission stays.
01
Many healthcare private investment firms talk about preserving the mission during diligence. Then the cost-cutting starts. Pharos was founded by a physician who spent twelve years treating patients. The mission is the reason the firm exists.
We bring operators, not just capital.
02
We provide access to healthcare operators who have built and scaled healthcare businesses before. They work alongside existing management, offering strategic and tactical support as requested.
Continuity and
stability
03
More than two decades together as partners. Fifteen years of average staff tenure.
We have done
this 33 times.
04
Thirty-three healthcare companies. We know the regulatory environment, the payor dynamics, and the operating challenges specific to underserved markets.
The Origin Story of Pharos
Hear the Pharos story from former ER doctor and co-founder, Dr. Kneeland Youngblood.
OUR IMPACT ON PEOPLE
Building a Workforce That Reflects the Communities We Serve.
5,826
Total employees across Fund III
78%
Female Employees
50%
Total minority representation
50states
Served by our portfolio Companies
$800M+
Invested toward improving healthcare in underserved communities as of q32 2025
3x
Avg employee count growth per company
"Working at Pharos gives me the opportunity to interact with some of the best and brightest healthcare entrepreneurs in the country, and to assist them in building their businesses while seeking to lower the overall cost of healthcare and improving patient outcomes. By focusing our attention in underserved markets, we also allow many entrepreneurs that otherwise might have limited chance of success due to lack of capital to pursue their dreams and create world-class healthcare companies. I couldn't have a more rewarding career."
— Bob Crants, Partner & Chief Investment Officer
Three Ways to Work with Pharos
Whether you're allocating capital or building a healthcare company, we start with the same question: does this serve the communities that need it most?
Investors
Pharos partners with foundations, family offices, and institutional investors who want competitive returns from healthcare companies serving underserved communities.
Founders & Operators
We invest $25 to $50 million in established, U.S.-based healthcare companies positioned to reduce disparities in underserved communities and scale toward a potentially successful exit. If your company fits that profile, we want to hear from you.
Healthcare Partners
If you are a payor, hospital, health system, or governmental agency that services rural, tribal, or other complex underserved populations, we would welcome the opportunity to share existing solutions we have identified or to use our network to source new solutions for the problems these communities face.