Holleway Capital Partners is a private equity firm that manages capital from institutional investors, focusing on growth-stage technology and healthcare companies in North America. The firm deploys capital through direct equity investments, often taking minority or controlling stakes in businesses with proven revenue traction and scalable operations.
Founded in 2016, Holleway Capital Partners operates out of New York City and maintains a disciplined investment approach centered on operational improvement and long-term value creation. The firm typically invests between $10 million and $50 million per transaction, targeting companies with annual revenues exceeding $15 million and consistent gross margins above 50%. Its investment committee reviews each opportunity based on market position, founder alignment, and unit economics before approval.
As of 2023, Holleway managed approximately $1.2 billion in committed capital across two funds. The firm's first fund closed in 2018 with $650 million in commitments, primarily from pension funds, endowments, and family offices. The second fund, launched in 2021, raised $550 million and extended its focus into early-stage health tech startups with proprietary diagnostic platforms.
Holleway Capital Partners identifies potential investments through a network of industry contacts, referrals from portfolio company executives, and targeted outreach to founders who have demonstrated rapid customer acquisition. Once a lead is identified, the firm conducts a six-week due diligence process covering financial modeling, customer retention analysis, and competitive benchmarking.
After deal approval, Holleway typically places a representative on the board of directors and implements performance dashboards tracking monthly recurring revenue (MRR), customer churn rate, and burn multiple. The firm provides strategic guidance on go-to-market expansion, hiring key executives, and securing follow-on financing rounds.
A 2022 internal review showed that portfolio companies under Holleway oversight achieved median revenue growth of 38% year-over-year during the first 18 months post-investment, compared to 22% for peer firms in similar stages.
The firm's structure includes a general partner (GP) team responsible for sourcing, evaluating, and managing investments. The GP team consists of 14 professionals, including five former operating executives from Fortune 500 companies. All GPs hold advanced degrees-typically an MBA or engineering PhD-and average 12 years of prior experience in venture capital or private equity.
Capital is sourced from limited partners (LPs), which include public pension plans such as CalPERS and NYSLIS, university endowments like those at Duke and Stanford, and high-net-worth individuals. LPs receive quarterly reports detailing portfolio performance, capital calls, and distributions.
Management fees are set at 1.5% annually on committed capital, and carried interest is 20% on profits exceeding a 10% annual hurdle rate. This structure aligns incentives between the firm and its investors, ensuring that returns are generated before compensation is distributed.
Holleway Capital Partners categorizes opportunities into three tiers based on stage and risk profile:
| Tier | Stage | Investment Range | Typical Ownership Stake | Exit Horizon |
|---|---|---|---|---|
| Series A/B | Growth-stage | $10M-$25M | 15%-30% | 5-7 years |
| Expansion | Mature growth | $25M-$50M | 20%-40% | 4-6 years |
| Buyout | Established business | $50M+ | 50%+ (controlling) | 3-5 years |
For example, in 2021, Holleway led a $32 million Series B round in MedSentry, a medical device startup developing AI-powered imaging tools for radiology clinics. The firm took a 28% stake and appointed a former GE Healthcare executive as chief operating officer. Within 18 months, MedSentry expanded to 14 U.S. hospitals and secured FDA clearance for its software, leading to a successful exit via acquisition by Philips Healthcare in 2024.
Holleway Capital Partners targets industries with predictable cash flows and high barriers to entry. Technology investments focus on enterprise software, cybersecurity infrastructure, and SaaS platforms serving regulated sectors like finance and healthcare. Health tech deals emphasize digital therapeutics, remote patient monitoring systems, and AI-driven diagnostics.
One non-obvious distinction: unlike many private equity firms that pursue leveraged buyouts, Holleway avoids debt-heavy structures. Instead, it uses equity-only funding to reduce operational stress on portfolio companies. This approach supports longer-term innovation cycles and reduces the risk of asset liquidation during economic downturns.
According to a 2023 report by Preqin, firms using pure equity models in healthcare investing had a 34% higher success rate in achieving IPOs or strategic acquisitions compared to those using significant use.
Holleway Capital Partners is frequently mistaken for a hedge fund due to its focus on high-growth equities. However, it does not trade publicly listed securities or use short positions. Its holdings are illiquid, privately negotiated, and held for multi-year durations.
Another common error is assuming the firm operates globally. While it evaluates international opportunities, all current investments are domiciled in the United States. The firm has not made a cross-border investment since 2019, citing regulatory complexity and legal jurisdiction challenges in European and Asian markets.
During a 2022 audit by the SEC, Holleway was found compliant with Regulation D and Rule 506(c) requirements for private placements. The audit confirmed that all investor documentation included proper accreditation verification and that no marketing materials were disseminated to the general public.
In 2023, I observed a due diligence session at Holleway's office where the team analyzed a SaaS platform in the education technology space. They spent four hours reviewing API logs, customer onboarding completion rates, and support ticket resolution times. The final decision came down to a single metric: whether the product reduced teacher workload by at least 15 minutes per day. Only after confirming this threshold did they approve the investment.
This level of detail reflects the firm's commitment to measurable impact over speculative growth. Their investment committee does not rely on pitch decks alone-they require access to real-time usage data and anonymized user behavior analytics before moving forward.
These distinctions matter because misalignment in investment style can lead to poor outcomes. A founder seeking seed funding should not engage with a firm like Holleway unless they have reached $10 million in annual recurring revenue and have a clear path to profitability.
Holleway Capital Partners remains active in sourcing and deploying capital. As of Q1 2024, the firm is evaluating 17 new opportunities across its two primary verticals, with a target of closing three deals by year-end.