Pharos Capital Group has made an investment in Nashville-based Sanderling Renal Services Inc, a provider of dialysis and renal telemedicine services focusing on patients in underserved communities across the U.S. No financial terms were disclosed. MTS Health Partners, L.P. served as financial advisor to Sanderling on the transaction.
Dallas, Texas and Nashville, Tennessee, May 16, 2022 – Pharos Capital Group, LLC (“Pharos”), a middle-market private equity firm based in Dallas and Nashville, announced today it has made a significant investment in Sanderling Renal Services, Inc. (“Sanderling” or the “Company”), a full-service provider of dialysis and renal telemedicine services focusing on patients in underserved communities across the U.S. Pharos’s investment will be used to support future growth of the Company’s home dialysis operations, implementation of telemedicine and hospital eDialysis contracts, and geographic expansion through both acquisitions and de novo startups. Terms of the transaction were not disclosed.
Founded in 2012 by serial entrepreneurs Dr. Jerome Tannenbaum and Deborah Tannenbaum and headquartered in Nashville, TN, Sanderling provides in-center and home-based dialysis out of 14 clinics in six states, most of which are located in USDA-defined rural areas with limited access to healthcare resources. The Company has developed an innovative home dialysis model for end-stage renal disease (“ESRD”) patients, which includes caregiver assistance and remote patient monitoring by nephrologists and dialysis nurses via telemedicine. The Company’s home-based dialysis model removes logistical burdens facing many patients, often enabling them to remain in their communities and reducing unnecessary hospitalizations. Sanderling leverages its network of professionals to provide tele-nephrology and acute eDialysis services to more than 30 partner hospitals.
Bob Crants, Founding Partner & Chief Investment Officer at Pharos, said, “Sanderling is on the cutting edge of bridging inequities in care. The Centers for Medicare & Medicaid Services has long been advocating home dialysis for the growing number of Americans with end-stage renal disease and those who face social barriers to adequate renal care. Against that backdrop, the Company’s innovative care delivery models and focus on rural and other underserved populations make it well-positioned to create access to compassionate care for a vulnerable segment of the population. In addition, we believe that the company’s proven ability to improve patient outcomes will ultimately yield meaningful cost savings.”
Dr. Tannenbaum will continue to lead the Company as Chairman and CEO. Dr. Tannenbaum is a trained nephrologist and deeply experienced kidney care executive, with a successful track record of building dialysis organizations, including REN Corporation, sold to Gambro in 1993, National Nephrology Associates, sold to Renal Care Group (now Fresenius) in 2004, and DSI Renal, acquired by DaVita in 2011.
Dr. Tannenbaum noted, “We are pleased to work with such an experienced, healthcare-focused partner to help Sanderling reach new goals in the next phase of its growth. Pharos’s significant resources and proven track record guiding value-based healthcare organizations will be invaluable as Sanderling expands services in existing markets, moves into new communities, and broadens its telemedicine and eDialysis offerings.”
This marks the third investment from Pharos’s latest flagship fund, Pharos Capital Partners IV, L.P., investing alongside its parallel fund, Pharos Capital Partners IV-A, L.P., a licensed Rural Business Investment Company. The funds will continue Pharos’s mission of lowering costs, improving outcomes, and expanding access to care, particularly within underserved urban and rural communities.
MTS Health Partners, L.P. served as exclusive financial advisor to Sanderling on the transaction.
About Sanderling Renal Services
Sanderling is a full-service provider of dialysis and renal telemedicine services focusing on patients in underserved communities across the U.S. The company currently provides in-center and home-based dialysis out of 14 clinics in six states with a focus on communities with limited access to healthcare resources. Sanderling also leverages its network to provide tele-nephrology and acute eDialysis services to 30+ partner hospitals, more than two-thirds of which are located in USDA-defined rural areas across 16 states.
About Pharos Capital Group
Based in Dallas and Nashville, Pharos Capital Group (www.pharosfunds.com) is a physician-founded investment firm focused on growing healthcare companies that aim to lower the total cost of care, improve patient outcomes and reduce healthcare inequalities in underserved markets, especially within urban and rural communities. Since inception, Pharos has invested in 57 companies and has over $1.1 billion of private equity assets under management as of March 31, 2022. Pharos typically invests $25-$50 million in rapidly growing middle market companies seeking later stage funding for internal growth, acquisitions, leveraged buyouts, management buyouts, or recapitalizations predominantly across healthcare sectors.