Emerus obtains $30 million growth capital from Austin Ventures

Jan 18 2011

Emerus Hospital Partners, LLC, a system of Texas-based specialty hospitals, is set to expand the company's operations. Emerus Hospital Partners has obtained growth capital of $30 million from Austin Ventures, one of the nation's leading venture and growth capital firms. The capital will be used to support the company's aggressive expansion plan as well as mergers and acquisitions.

“They are a great growth story in Texas, and we are excited to partner with the Founders to accelerate their success.”

"Emerus has established itself as a trailblazer and market leader in an exciting, emerging market within healthcare services," said David Lack, Partner, Austin Ventures. "They are a great growth story in Texas, and we are excited to partner with the Founders to accelerate their success."

Emerus, formerly known as 24 HR Emergency Room, currently operates five facilities in Texas, three in the Houston area and two in the Dallas/Fort Worth Metroplex. The Woodlands-based company has recently been noted for its "15 minutes or it's free" offer, which promises their ER patients will be seen by an ER physician within 15 minutes, or their care is free.

"This investment significantly strengthens our balance sheet and positions us to remain a leading provider of innovative, emergency room services," said Toby Hamilton, CEO, Emerus Hospital Partners. "In addition, Austin Ventures' financial commitment beyond this initial investment ensures that we will have the capital needed to fund our growth plan for many years to come. We look forward to expanding the availability of emergency services to the communities we serve."

The Emerus expansion plan includes multiple sites under contract in several major Texas markets. Emerus is actively securing additional strategic sites throughout Texas as well as other key markets across the US.

FirstSouthwest, a Dallas-based diversified investment bank, acted as exclusive financial advisor to Emerus in this transaction.