Confluence Healthcare Partners is an advisory and growth equity group focused exclusively on the healthcare services market with an emphasis on lower middle market companies. We believe lower middle market companies provide the combination of greater opportunity to benefit from operational and financial expertise and enhanced returns on a risk adjusted basis due to EBITDA growth and multiple expansion.
Healthcare remains a significant component of the US economy (19%) despite numerous initiatives to reduce the rate of spending growth. There are a number of competing initiatives to reduce healthcare costs but virtually every constituency agrees that value-based healthcare is a central tenet of any successful effort. We believe physicians, particularly primary care physicians, are at the core of value-based healthcare.
Our goal is to partner with leading providers and companies in sectors of healthcare services where we can provide a combination of operational expertise and financial backing to accelerate growth. We help our partner companies expand into new geographies and service lines and grow through strategic collaboration and acquisitions. In many cases, we will be the transitional capital and partner that allows these companies to grow to such a level that they are strategically relevant to larger corporations and/or private equity groups. Allowing our partner companies to benefit from this growth period by maintaining a meaningful level of ownership is critical to mutually aligned incentives.
The success of the companies we partner with is always driven first and foremost by clinical excellence and a desire to transform the way healthcare is delivered. Our success will ultimately be measured by how much value we bring to our partners, our investors, and the communities we serve.