Beyond the Balance Sheet: A New Model for Healthcare Philanthropy

LOS ANGELES, CA – December 15, 2025 – In the world of private equity, success is traditionally measured in multiples and returns on investment. However, a recent move by a prominent healthcare-focused firm suggests a new variable is entering the equation: measurable social impact. Varsity Healthcare Partners (VHP), a private equity firm specializing in healthcare services, recently announced that its philanthropic arm, The VHP Foundation, has completed its first year of operations by funding three carefully selected non-profits. While corporate philanthropy is not new, the foundation’s strategic approach—mirroring the analytical rigor of a private equity deal—offers a compelling blueprint for how capital can be deployed to foster genuine innovation in community health and wellness.

Established in 2024, the VHP Foundation is not a passive, check-writing entity. Instead, it operates with a clear investment thesis. Its mission is to support “entrepreneurial, emerging non-profit organizations whose operations demonstrate a discrete, measurable impact.” This language is telling. It eschews the broad-strokes approach of traditional corporate giving in favor of a targeted strategy, much like VHP’s own “buy and build” playbook for its portfolio companies. By focusing on smaller organizations where its funding can have an outsized effect, the foundation is making a strategic bet on scalability and leadership, applying the same due diligence to its grants as it would to a potential acquisition.

A Private Equity Playbook for Giving

The VHP Foundation's operational model represents a significant departure from conventional corporate social responsibility. The selection process for its inaugural grantees was described as a “comprehensive evaluation process that considered mission alignment, leadership strength, program scalability and the potential for measurable impact.” This framework is a direct translation of investment principles into the philanthropic space.

By prioritizing emerging charities, the foundation aims to provide catalytic capital—funding that can stabilize an organization and fuel its next stage of growth. This approach stands in contrast to making large, symbolic donations to established, multi-billion-dollar institutions. The VHP model suggests a belief that true innovation often comes from nimble, mission-driven organizations that are closer to the communities they serve. This is philanthropy as venture capital.

The foundation is funded through discretionary donations from VHP professionals and a percentage of proceeds backed by the firm's owners, creating a direct link between the firm's financial success and its social contributions. This structure fosters a culture of shared responsibility and aligns the entire organization, from junior associates to senior partners, with the foundation's mission. It’s an intentional effort to integrate social impact into the firm's core identity, moving it from a peripheral activity to a central tenet of its operations within the healthcare ecosystem.

Investing in the Human Element of Health

The foundation’s inaugural grants provide a clear window into its priorities, which extend beyond clinical settings to address the social and emotional determinants of health. The three chosen organizations—One More Wave, The Ferrari Kid, and Because I Said I Would—each tackle critical aspects of well-being with innovative, human-centered solutions.

One More Wave provides customized surf equipment and ocean therapy to wounded and disabled veterans. This program directly addresses the mental and physical health challenges facing veterans, using community and sport as a powerful healing modality. It recognizes that health is not merely the absence of disease but the presence of purpose and connection. While the organization received a moderate two-star rating from Charity Navigator based on its financial accountability, VHP's investment signals a focus on the potential of its unique therapeutic model.

The Ferrari Kid offers “celebrity-for-a-day” experiences to children battling cancer and other life-threatening illnesses. This goes beyond medical treatment to address the profound emotional and psychological toll of pediatric illness. By creating moments of joy and hope, the organization provides a vital, non-clinical intervention that supports resilience in both children and their families. With a stellar four-star rating and a 97% score from Charity Navigator for its financial health and transparency, The Ferrari Kid exemplifies the kind of high-impact, well-managed organization the VHP Foundation seeks to empower.

Because I Said I Would focuses on a foundational aspect of mental health: character and resilience. Through its Promise Card initiative and programs in schools and prisons, it aims to instill habits of accountability and commitment. Its work with bereaved families at its Ohio camp provides crucial support in the face of tragedy. Since its founding in 2012, it has distributed millions of its Promise Cards globally, demonstrating significant scale. This grant supports the infrastructure of mental wellness at a community level, a preventative approach that is often underfunded.

The Strategic Imperative of ESG

The VHP Foundation’s launch is part of a broader, systemic shift within the private equity industry. Driven by increasing pressure from investors, regulators, and the public, firms are moving Environmental, Social, and Governance (ESG) considerations from the periphery to the core of their investment strategy. This is no longer about optics; it’s about fiduciary duty and long-term value creation. A strategic, data-driven approach to philanthropy, like VHP’s, is a tangible manifestation of the 'S' in ESG.

For a firm focused exclusively on healthcare services, this approach is particularly resonant. VHP’s day-to-day business involves identifying and scaling companies that deliver healthcare. Its philanthropic strategy is a natural extension of this, investing in organizations that address health and wellness gaps that the traditional medical system may not. It reflects a sophisticated understanding that a community’s health is an ecosystem, where veteran support, pediatric mental well-being, and general resilience are as critical as clinical services.

This model challenges the rest of the healthcare investment community. It posits that contributing to the health ecosystem should be as rigorous and strategic as profiting from it. As the VHP Foundation actively seeks donation requests for its 2026 season, it is not just offering grants; it is signaling a more accountable and impactful future for corporate philanthropy in healthcare, one where returns are measured not just in dollars, but in lives improved and communities strengthened.