Healthcare Investing with Meaning: Why We Care About Impact and IRR

Let’s be honest: private equity doesn’t have the warmest reputation.

It’s often painted as cold, transactional, and ruthlessly focused on financial engineering. Strip the business. Squeeze the margins. Flip the asset. Move on.

That’s not how we do things at Ara Capital.

Yes, we care about returns — we’re proud of our track record. But for us, IRR and impact are not mutually exclusive. In fact, we believe the best investments are the ones that do both.

Let’s explain.

Why Healthcare?

Because it’s personal.

The businesses we invest in don’t sell shoes or SaaS. They treat people — in pain, in fear, in need of answers.

Whether it’s a dentist rebuilding a smile, a podiatrist treating chronic foot pain, or a radiologist spotting a tumour early — healthcare isn’t just transactional. It’s transformational.

We get to improve lives and livelihoods. That’s a privilege.

Why Private Equity?

Because good healthcare providers deserve great infrastructure.

We see brilliant clinicians stuck doing admin, using outdated systems, or undercharging for world-class care — just because no one ever taught them how to build a business.

Private equity, done right, solves that.

We bring:

• Financial clarity

• Operational rigour

• Digital enablement

• Strategic guidance

• Culture that scales

We don’t just grow revenues. We build resilience — for teams and patients alike.

What Does “Impact” Mean to Us?

Impact isn’t just about ESG buzzwords. For us, it’s about:

1. Access

• Opening branches in underserved areas

• Shortening wait times

• Expanding procedure offerings that are life-changing (not just profitable)

2. Quality

• Standardising protocols

• Tracking outcomes

• Retaining top talent by building great workplaces

3. Sustainability

• Supporting clinician wellbeing

• Designing businesses that last beyond the founder

• Creating jobs, not burnout

We’re proud that many of our portfolio clinics see >4.5⭐ average reviews — not because of marketing, but because of meaningful care.

And What About Returns?

Our investors expect — and receive — strong, risk-adjusted returns. Fund I exceeded its benchmarks. Fund II is tracking ahead of schedule. Fund III is off to a fast start.

Here’s the secret: impact drives performance.

• Patients return to clinics they trust

• Staff stay in environments where they feel valued

• Regulators favour operators who uphold standards

• Strong culture and systems attract premium valuations

In other words: better businesses are better investments.

Final Word

At Ara Capital, we don’t believe in choosing between doing well and doing good.

We believe in backing healthcare businesses that do both — and helping them scale without losing their soul.

Because at the end of the day, IRR matters. But so does who you become while chasing it.