Investing Beyond Capital - Finding the Right Partnership Fit

On this episode of The Capital Corner, McGuireWoods’ Geoff Cockrell discusses investing in the small to mid-sized healthcare market with Seven Hills Capital’s founding partner Matt Pettit.

As the leader of a firm focused on first round institutional capital investment opportunities, Matt also comes to his position with experience as the CEO of dermatology practice management company, Ascend Dermatology. His background means that he’s sat on both sides of the healthcare services table and has lived the daily experiences of the CEOs his investment group supports.

But investing in small to medium-sized companies requires a much different approach than those used by larger scale equity firms. Instead of using traditional networking events, such as those hosted by the Association for Corporate Growth (ACG), Matt and his team focus on forming personal relationships with potential partners and will even enact letter-writing campaigns as part of their process.

Matt discusses the unique experiences that come with investing in the low to middle market and shares how his company serves as a strategic partner — not just a funding source. By offering business development assistance and access to capital markets, Seven Hills supports its portfolio companies in creating long-lasting businesses with its operator-centric approach.

Meet Your Host

Name: Geoffrey Cockrell

What he does: Geoff is the Chair of McGuireWoods’ private equity group and serves on the firm's Board of Partners; he has extensive experience in mergers and acquisitions, especially in the healthcare space.

Organization: McGuireWoods

Connect: LinkedIn

Featured Guest

Name: Matthew Pettit

What he does: Matt is the founding partner at Seven Hills Capital. Seven Hills is a long-term partner for management teams seeking to drive growth, change, and improved outcomes in healthcare services. Matt currently serves on the board of directors of the VersiCare Group and Reliable Medical supply company.

Organization: Seven Hills Capital

Connect: LinkedIn

Notes From the Capital Corner

Top takeaways from this episode

★ Small to mid-sized healthcare businesses need more than just capital. That’s why Seven Hills is committed to forming meaningful relationships with its portfolio companies and offering support beyond money in the bank.

★ Successful integration requires exceptional communication. When a new partnership is formed, the transition is a fragile process that requires careful planning. Existing management and new management need to feel supported and prepared to navigate coming changes. Transparency and a detailed playbook help everyone involved feel comfortable.

★ Investors need to know their limits. Understanding your firm’s capacity is vital to ensure smart investment decisions. Bringing in entirely new platforms versus add-on acquisitions require different time commitments and use of resources. Know how much your team can handle and include your current capacity...