Hesperia Capital

Overview

Hesperia Capital is a private equity firm based in Boston, Massachusetts, focusing on investing growth equity capital into mission-driven companies. The firm aims to create enduring value for shareholders, employees, customers, and their communities by connecting mission-driven capital with mission-driven companies. Hesperia Capital fills the gap between venture and later-stage capital, targeting profit-oriented companies that effectively balance a worthy mission, a purpose-driven culture, and a desire to create prosperity for their stakeholders. The firm's investment strategy emphasizes companies that provide goods or services enhancing societal well-being, education, and stability, promoting broad-based prosperity and contributing to the elevation of mankind. These companies are expected to create meaningful economic advancement opportunities for employees, customers, vendors, and the communities in which they operate. Hesperia Capital seeks businesses that maintain a clearly defined purpose embraced by employees at every level, uphold a set of corporate values permeating the organization, and have positive brand value and reputation in the markets they serve. Hesperia Capital's investment criteria include a proper balance of a worthy mission, purpose-driven culture, and profit-driven objectives. The firm targets companies that are recently profitable, run-rate profitable, or have near-term visibility of profitability. Additionally, Hesperia Capital looks for businesses that generate attractive returns on capital for both the enterprise and its customers, possess a complete or near-complete management team, and have little to no prior institutional capital. The firm typically invests between $1,000,000 and $5,000,000 in convertible preferred stock, taking minority positions with protective provisions. The use of proceeds is intended to fund growth rather than infrastructure, support management or shareholder buyouts, or serve as a bridge to less or even non-dilutive capital. Hesperia Capital's portfolio includes specialized and integrated behavioral health practices offering therapy, counseling, and testing; next-generation, in-home medical alert and communication systems leveraging machine learning to keep older adults healthier and safe; mobile mental health platforms delivering clinical care to teens and young adults; clamp-on, connected water submetering solutions for multi-family properties and mobile home communities; and nature-based solutions for the autonomous, on-site, regenerative treatment of surface water, wastewater, and soil. The firm's leadership comprises co-founders Michael Papile and Rhett Hunter, who bring close to six decades of combined work experience and a strong belief in the role of capitalism in elevating the human condition.