Emerus Hospital Partners LLC has received $30 million in growth capital from Austin Ventures.
The capital will be used to support The Woodlands-based health care company’s aggressive expansion plans, as well as mergers and acquisitions.
“Emerus has established itself as a trailblazer and market leader in an exciting, emerging market within health care services,” said David Lack, a partner with Austin Ventures. “They are a great growth story in Texas.”
Lack said he met with several health care companies in the emergency services segment from across the state and chose to invest in Emerus because he was impressed with its aggressive growth plans and innovative business practices.
Austin Ventures’ core philosophy for investing centers around growth, he said, and he believes Emerus is a good fit based on its headquarters in Texas and its prime position in a growing market segment.
With $3.9 billion under management, Austin Ventures is one of the most active venture capital and growth equity firms in Texas.
Emerus, formerly known as 24 HR Emergency Room, currently operates three facilities in the Houston area and two in the Dallas-Fort Worth Metroplex.
Toby Hamilton, CEO of Emerus Hospital Partners, said this investment significantly strengthens the company’s balance sheet.
Emerus plans to open between 12 and 20 new hospitals during the next two years in several major Texas markets. Hamilton declined to divulge specific geographic areas, but said the company also plans to expand outside Texas for the first time.
Emerus is currently scouting acquisitions that would allow the company to quickly expand into new markets, he added.