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1 big thing: SEMCAP Health debuts

Artwork: Megan Robinson/Axios

SEMCAP launched SEMCAP Health, dedicated to high-growth health technology and health services companies, the Philadelphia-based company tthey Sarah.

Driving the news: With two deals already under its belt, SEMCAP Health is in the market with a $400 million target for its first healthcare growth equity fund, says managing partner Brett Moraski, who leads the team. investment alongside Victor Kats.

Details: SEMCAP Health, one of SEMCAP’s three impact-focused strategies, targets companies that leverage technology to advance healthcare quality, affordability, equity and access.

  • It takes minority or majority positions, targeting profitable or nearly profitable companies.
  • Its typical check size can reach $50 million, but the company can increase its size with co-investments.
  • SEMCAP Santé anticipates a first closing at the beginning of next year for the vehicle.

The backstory: SEMCAP Health has assembled a roster of experienced investors and industry advisors, with backgrounds as operators and leaders within the various key components of healthcare: healthcare systems, managed care and payers, pharmaceutical services and government.

  • Moraski was most recently an operating partner at Frazier Healthcare Partners, and previously led strategic investment and corporate development activities at WellPoint (now Anthem) and Highmark Blue Cross Blue Shield.
  • Kats is a former executive of Ascension Ventures, the strategic venture capital arm of Ascension, one of the nation’s largest healthcare systems. Prior to that, he led corporate development at Allscripts.
  • SEMCAP Health President Ralph Muller is the former CEO of the University of Pennsylvania Health System.

What they say : By combining strategic market insights with the traditional investor’s playbook, SEMCAP Health is positioned to help proven companies at inflection points evolve and navigate the complexities of the healthcare ecosystem, Moraski says.

  • Its bench of investors and nine operational partners know firsthand the pain points and how to turn midsize companies into market leaders, he says.
  • The investors and partners of SEMCAP Health were “often the partners and customers of these companies that we [SEMCAP Health] targeting.”

Catch up fast: SEMCAP Health has made two pre-financing investments.

And after: SEMCAP is eyeing companies that apply disruptive technologies to a variety of healthcare topics, Moraski says, including:

  • Workforce optimization support and technology in clinical care to address work-related challenges.
  • Move care from institutional settings to more cost-effective settings such as CHWs or the home.
  • Adhere to patient engagement with healthcare payers to improve decision-making and access to care.