Finding Attractive Investment Opportunities Across Target Themes

Finding Attractive Investment Opportunities Across Target Themes https://www.martiscapital.com/wp-content/themes/movedo/images/empty/thumbnail.jpg 150 150 kari.sharp@gmail.com kari.sharp@gmail.com https://secure.gravatar.com/avatar/ad1ca5fb0ac61bc75fee91545fa9a612?s=96&d=mm&r=g December 16, 2022 December 16, 2022

Martis seeks to capitalize on company-specific or subsector-driven inflection points, as attractive investment opportunities arise in companies that are well-positioned for change or emerge in response to challenges in the areas of cost containment, operating efficiency and improved clinical outcomes.

To develop our conviction in a certain narrowly-defined end market, we follow a rigorous theme ideation process that involves speaking with numerous Martis ecosystem stakeholders. Through conversations with strategic advisors, industry executives, deal intermediaries, and other external sources, we form a holistic view of the theme and impacted subsegment, and in doing so also look to generate leads of prospective targets.

Below is a representative sample of some of the areas we have developed a thesis around. Let’s start a conversation!

Theme	Key Rationale	Active Platforms (looking for add-ons)
Clinical Research Trials	Large and growing market with resilient demand drivers Highly fragmented market in early consolidation phase High premium placed on clinical site operators that can recruit and retain patients in expedient and efficient manner	(2021)
Value Based Care	Broader shift from FFS to VBC models Ability to drive meaningful cost reductions and improve patient outcomes Fragmented PCP landscape presents M&A opportunity	(2022)
Autism Care	Large market that continues to grow with increased ASD diagnosis Payors supportive of early intervention to improve outcomes and save costs Significant whitespace exacerbated by provider supply shortages
Medical Device CMO	Large and growing end-markets with increased outsourcing from OEMs to CMOs Specialization drives sticky, recurring revenue with high switching costs Highly fragmented space with opportunity to execute accretive M&A
Niche RCM Software	Large, growing, and multi-faceted market Opportunity for organic and inorganic growth to scale a platform High-quality revenue given sticky, re-occurring nature of outsourced RCM spend
TPA / Cost Containment	Growing market given increase in SMBs transitioning to self-funded insurance plans Ability to bring new technology and processes to smaller, less sophisticated companies
Dental Care	One of the largest provider markets by spend, provider count and business count Strong value proposition to physicians Tangible value creation levers outside M&A
Clinical Trial Recruitment & Drug Development Tools	Rising sponsor R&D spend pushes trial organizations to reach, recruit and randomize patients at scale, particularly from underrepresented populations (recruitment tools) Sponsor and site need for centralized platforms for organizational data, protocol execution, and metric reporting (CTMS, RTSM) Broad necessity of technology solutions enabling secure, accurate documentation for trial compliance and regulatory submissions (eSource, eReg, eTMF)