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Adviser Profile

As of Date 03/14/2024
Adviser Type - Large advisory firm
Number of Employees 7 -12.50%
of those in investment advisory functions 6 -14.29%
Registration SEC, Approved, 06/10/2013
Other registrations (1)
AUM* 420,483,772 -8.70%
of that, discretionary 420,483,772 -8.70%
Private Fund GAV* 423,093,936 -8.13%
Avg Account Size 105,120,943 -8.70%
SMA’s No
Private Funds 4
Contact Info 212 xxxxxxx
Websites

Client Types

- Pooled investment vehicles

Advisory Activities

Compensation Arrangments

- A percentage of assets under your management
- Performance-based fees

Recent News

Reported AUM

Discretionary
Non-discretionary
461M 395M 329M 263M 197M 132M 66M
2016 2017 2018 2019 2020 2021 2022 2023

Private Funds



Employees

Private Funds Structure

Fund Type Count GAV
Fund TypePrivate Equity Fund Count4 GAV$423,093,936

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Brochure Summary

Overview

Firm Description HEP is a private equity firm founded in 2006 that invests primarily in middle market, private, U.S.- based companies in the healthcare information technology and healthcare service sectors. Rick Stowe is a founding member of the Firm. Dave Tamburri andEzra Mehlman joined HEP in 2009 and2010, respectively. Dave andEzra each serves as Managing Partner and, along with Rick, are the Firm’s principal owners. The Firm targets companies that provide innovative technologies and services primarily to hospital systems or health plans. HEP’s Funds invest in growth equity, recapitalization and buyout opportunities where it is typically all or part of the first institutional investor group and has control or significant governance influence. HEP leverages its extensive hospital system and health plan network of relationships to target attractive market segments, to identify and evaluate investment opportunities, and to support the growth of HEP’s portfolio companies. (See Item 8 for a more detailed discussion of HEP’s investment strategy.) HEP currently manages four funds (collectively referred to herein as the “Funds”): Health Enterprise Partners, L.P. (“Fund I”), Health Enterprise Partners II, L.P. (“Fund II”), Health Enterprise Partners III, L.P. (“Fund III”) and Health Enterprise Partners IV, L.P. (“Fund IV”). The Funds generally invest through negotiated transactions in operating companies. HEP’s investment advisory services to the Funds consist of identifying and evaluating investment opportunities; structuring and negotiating the terms of investments and consummating investments on behalf of the Funds; managing and monitoring investments; and ultimately selling such investments. Investments are made in non-public companies. Upon investing in such companies, senior principals of the Firm generally serve on the respective boards of directors or otherwise act to influence control over management of portfolio companies held by the Funds. HEP provides investment advice directly to the HEP Funds and not to investors in the Funds individually. The applicable GP (as defined below) of each Fund retains investment discretion, and investors in the Funds do not participate in the control or management of the Funds. The Firm’s advisory services for each Fund are detailed in the applicable offering memorandum and limited partnership agreements and are further described below under “Item 8 - Methods of Analysis, Investment Strategies and Risk of Loss.” Investors in the Funds participate in the overall investment program for the applicable Fund but
may be excused from a particular investment due to legal, regulatory or other applicable constraints. Investment restrictions for the Funds, if any, are generally established in the organizational documents of the applicable Fund. The Funds or the Firm have entered into and may enter into again in the future side letters or similar agreements with certain investors that have the effect of establishing rights under, or altering or supplementing, a Fund’s limited partnership agreement. As of December 31, 2022, HEP had regulatory assets under management of $420,483,772 (portfolio value plus undrawn commitments), all of which are managed on a discretionary basis in HEP’s sole discretion. Principal Owners/Ownership Structure The Funds are structured as follows. Fund I is owned 1% by its general partner, HEP Associates, LLC (the “Fund I GP”), with the remaining interests divided pro rata amongst Fund I’s limited partners according to each investor’s capital commitment. Fund I limited partners no longer pay management fees to HEP to advise Fund I in its decision-making. The Fund I GP is owned by Managing Members and Special Members. Fund II is structured similarly to its predecessor fund. Fund II is owned 1% by its general partner, HEP Associates II, LLC (the “Fund II GP”), with the remaining interests divided pro rata amongst Fund II’s limited partners according to each investor’s capital commitment. Fund II limited partners pay management fees to HEP to advise Fund II in its decision-making. The Fund II GP is owned by Managing Members and Special Members. Likewise, Fund III is owned 1% by its general partner, HEP Associates III, LLC (the “Fund III GP” and together with the Fund I and II GPs, the “GPs”), with the remaining interests divided pro rata amongst Fund III’s limited partners according to each investor’s capital commitment. Fund III limited partners pay management fees to HEP to advise Fund III in its decision-making. The Fund III GP is owned by Managing Members, Special Members and Venture Members. Fund IV is owned 1.5% by its general partner, HEP Associates IV, LLC (the “Fund IV GP”), with the remaining interests divided pro rata amongst Fund IV’s limited partners according to each investor’s capital commitment. Fund IV GP has also committed additional capital as an affiliated limited partner. Fund IV limited partners pay management fees to HEP to advise Fund IV in its decision-making. The Fund IV GP is owned by Managing Members, Special Members and Venture Members. For more information about HEP’s owners and executive officers, see HEP’s Form ADV Part 1, Schedule A.