Healthcare

We invest exclusively in healthcare because of the attractive industry dynamics and the opportunity to do well while doing good.

Healthcare is not only larger than most industries but also growing more rapidly and experiencing less cyclicality. It represents a full 18% of U.S. Gross Domestic Product (GDP) and is growing at twice the pace of U.S. GDP. In the last recession, the S&P fell 1.4x the comparable healthcare index. With tailwinds including an aging population and increased prevalence of disease, the healthcare industry will remain an attractive and recession-resistant investment area.

Healthcare is also extremely complex. From third-party payor dynamics, to evolving reimbursement models, to extensive regulatory and compliance frameworks, domain-specific expertise is required to both identify opportunities as well as avoid risk. Industry-focused funds deliver greater multiples on invested capital and internal rates of return than non-specialized funds. And the positive delta between generalists and specialists is greatest in healthcare.

Healthcare has its own language. Operators quickly recognize whether partners speak their language or not. Cimarron’s principals have a combined 80+ years of investing in and operating growing healthcare businesses. Our networks extend across the healthcare landscape to professionals that are ready and willing to provide guidance and support.