The U.S. veterinary services market is estimated to be approximately $50 billion and growing at approximately 3–4 percent per year. Growth has been fueled by the sustained “humanization of animals” trend of consumers spending more money on their pets, pets living longer, and a modest increase in the pet population. The largest challenge facing the veterinary industry today is a growing imbalance between the demand for veterinary services and the supply of veterinarians, with the number of available jobs outstripping total applicants on a five to one ratio. The proliferation of the supply-demand imbalance has exacerbated the need for institutionalized staffing solutions for veterinarians as hospitals struggle to hire and maintain quality talent.
New Harbor identified animal health and wellness as a focus area in 2015 and executed on that thesis through our investment in Wedgewood Pharmacy. At the end of our investment in Wedgewood Pharmacy, we revisited our animal health and wellness thesis and reestablished our focus on companies that provide services to veterinary clinics rather than participating in the highly competitive veterinary clinic consolidation strategy. New Harbor was then introduced to IndeVets (“the Company”) and was immediately impressed by how strongly the Company aligned with our refined thesis for outsourced services to veterinary clinics, particularly with its focus on workforce management.
Founded in 2017 by Michael Raphael and headquartered in Philadelphia, PA, IndeVets’ mission is to unite the country’s top veterinarians and hospitals by creating the best place for veterinarians to work. IndeVets provides a unique blend of flexibility, stability, work-life balance, mentoring, and community that differentiates it amongst veterinarian career paths and allows for happy, healthy doctors to perform at their absolute best. The Company’s veterinarians have full flexibility in choosing when and where they work through a proprietary scheduling software, and hospital partners receive the support of high-quality veterinarian services to help supplement and support their workforces. IndeVets currently employs over 100 W-2 veterinarians, which it staffs across a network of over 1,300 veterinary hospitals.
“We are thrilled about this partnership potential. New Harbor’s track record of scaling animal health companies will be extremely valuable as we expand IndeVets’ reach to new markets and help even more veterinarians reach their utmost potential.”Michael Raphael
New Harbor’s investment management plan will focus on optimizing the Company’s recruiting and retention processes, expanding and diversifying the Company’s existing model, investing in the proprietary CATS technology platform, enhancing corporate structure, and establishing a strategic board of directors and board advisors. New Harbor intends to partner with the IndeVets team to create the premier tech-enabled provider of workforce solutions in the veterinary industry.
*Certain statements about New Harbor Capital made by portfolio company executives herein are intended to illustrate New Harbor Capital’s business relationship with such persons, including with respect to New Harbor Capital’s facilities as a business partner, rather than New Harbor Capital’s capabilities or expertise with respect to investment advisory services. Portfolio company executives were not compensated in connection with their participation, although they generally receive compensation and investment opportunities in connection with their portfolio company roles, and in certain cases are also owners of portfolio company securities and/or investors in New Harbor Capital-sponsored vehicles. Such compensation and investments subject participants to potential conflicts of interest in making the statements herein.