Sheridan Capital Partners

Background

Sheridan Capital Partners is a Chicago-based private equity firm specializing exclusively in the healthcare sector. Established in 2012, the firm is dedicated to partnering with founder-owned and entrepreneurially led businesses to drive significant growth and create enduring value. Sheridan's mission is to be an extraordinary partner to founders and management teams, facilitating remarkable growth through strategic investments and operational expertise.

Key Strategic Focus

Sheridan employs a disciplined, thesis-driven investment approach, concentrating on lower middle-market companies within the healthcare industry. The firm's core objectives include:

Transaction Types: Control positions in healthcare businesses, including partial recapitalizations or buyouts.

Transaction Size: Target platform EBITDA of $3 to $20 million, with equity investments ranging from $15 to $100 million, including add-ons.

Industry Focus and Preferred Subsectors:

Healthcare Providers

Healthcare Outsourced Services

Consumer Health & Products

Company Characteristics:

Founder-owned, entrepreneurially led businesses

Strong business models with consistent growth and profitability

Operating in fragmented markets with positive secular growth trends

Diversified client bases with limited regulatory risks

Geographic Focus: Companies headquartered in the United States or Canada.

Financials and Funding

Sheridan has demonstrated robust fundraising capabilities:

Fund II: Closed in January 2021 at its hard cap of $306 million, exceeding the initial target of $250 million.

Fund III: Closed in 2023 at its hard cap of $575 million, reflecting continued investor confidence and the firm's strong track record.

The capital raised is strategically allocated to acquire and invest in lower middle-market healthcare companies, supporting organic growth initiatives and facilitating add-on acquisitions to build market-leading platforms.

Pipeline Development

In 2023, Sheridan completed 26 transactions, including three new platform investments:

Future Care Consultants (FCC): A specialty revenue cycle management and technology-enabled back-office services provider for skilled nursing facilities, serving over 170 locations across 14 states.

FirstEnroll: A health insurance billing and enrollment third-party administrator offering support for supplemental medical insurance products, servicing over 300,000 customers nationwide.

Ascend Plastic Surgery Partners: A plastic surgery and aesthetics practice management company headquartered in Atlanta, aiming to build a national footprint.

These investments align with Sheridan's strategy of partnering with companies exhibiting strong growth potential in fragmented healthcare sectors.

Technological Platform and Innovation

Sheridan leverages a comprehensive operational approach to drive value creation, focusing on:

People: Supporting and supplementing existing management teams.

Processes: Optimizing operations through reporting metrics and best practices.

Systems: Adding infrastructure to facilitate scalability and enabling growth through organic expansion and strategic acquisitions.

This methodology ensures that portfolio companies are well-equipped to navigate complex healthcare environments and achieve sustainable growth.

Leadership Team

Sheridan's leadership comprises experienced professionals with deep expertise in healthcare investments:

Jonathan Lewis: Founder & Partner

Sean Dempsey: Partner

Jessica Morris: Partner & Chief Financial Officer

Nicholas Rowland: Partner

Christopher McCrory: Principal

The team's collective experience and strategic vision have been instrumental in Sheridan's success and growth.

Leadership Changes

In 2023, Sheridan announced the promotion of Jessica Morris to Partner. Jessica joined the firm in 2017 and has significantly contributed to its growth while serving as Chief Financial Officer and Chief Compliance Officer.

Competitor Profile

Market Insights and Dynamics

The healthcare private equity sector is characterized by substantial growth potential, driven by factors such as an aging population, technological advancements, and increasing demand for healthcare services. The market is highly competitive, with numerous firms vying for attractive investment opportunities in fragmented healthcare subsectors.

Competitor Analysis

Sheridan operates in a competitive landscape alongside notable private equity firms specializing in healthcare investments, including:

Advent International: A global private equity firm with a strong focus on healthcare investments.

Bain Capital: Engages in healthcare investments through its dedicated life sciences and private equity divisions.

TPG Capital: Invests in healthcare through its dedicated healthcare investment platform.

These competitors focus on various healthcare subsectors, employing diverse investment strategies to capitalize on market opportunities.

Strategic Collaborations and Partnerships

Sheridan actively seeks strategic collaborations to enhance its market position and innovation capacity. For instance, in 2025, the firm announced the majority sale of DAS Health Ventures, LLC to Coalesce Capital, retaining a minority ownership position to continue supporting the company's growth.

Operational Insights

Sheridan's strategic considerations include:

Market Position: Focusing exclusively on healthcare allows Sheridan to develop deep industry expertise and build a strong reputation among founders and management teams.

Competitive Advantages: The firm's hands-on operational approach, combined with its thematic investment strategy, enables it to identify and capitalize on attractive opportunities in fragmented healthcare markets.