The Operator's Edge: Private Equity Pivots to Floor Experience

TAMPA, FL – October 16, 2026

For the better part of a decade, the private equity playbook in the lower middle market relied heavily on financial engineering. Favorable credit markets and expanding multiples allowed dealmakers to generate outsized returns largely through leverage and timing. But as macroeconomic tides have shifted, the era of cheap capital has definitively closed. Today, the firms distinguishing themselves are those trading spreadsheets for shop floor experience, deeply integrating seasoned executives into their core investment strategies.

This fundamental shift was underscored today when Tampa-based HealthEdge Investment Partners announced the appointment of Todd Cooper as an Operating Partner. The move is not merely a personnel update; it is a clear signal of where the healthcare investment landscape is heading. The firm, which focuses exclusively on lower middle-market healthcare businesses, is elevating a proven executive from its portfolio boardrooms directly into its deal-making and firm-wide operational apparatus.

From Boardroom to Deal Team

Cooper is no stranger to the organization's ecosystem. Prior to this promotion, he served as Lead Director across three of its portfolio companies: Alatus Solutions, Custom Protect Ear, and Veridian Healthcare. In his new capacity, he will bridge the gap between investment strategy and ground-level execution, working alongside the investment team to evaluate new targets while continuing to drive operational improvements across existing assets.

The transition from portfolio director to firm-wide partner highlights a growing reliance on veteran operators to generate organic value. In the lower middle market, acquired companies often possess strong product-market fit but lack the mature operational infrastructure required to scale. Generalist dealmakers can identify the financial opportunity, but it takes an operator to execute the transition.

One healthcare M&A advisory analyst noted that the competitive advantage now belongs to investment groups that integrate operators early in the due diligence process. By doing so, they can identify hidden operational risks and craft realistic 100-day post-acquisition plans that accelerate EBITDA growth without relying solely on market tailwinds.

Navigating the Margin Squeeze in Healthcare

The healthcare sector presents a unique paradox for investors. It is inherently defensive, driven by demographic trends like an aging population and a constant need for medical services. Yet, it is also notoriously complex, characterized by stringent regulatory environments, shifting reimbursement models, and relentless pressure on operating margins.

Navigating these headwinds requires specialized domain expertise. A generalist might understand the fundamentals of a supply chain, but a specialist understands the nuances of FDA compliance, HIPAA regulations, and the intricacies of durable medical equipment billing.

Cooper brings a wealth of this highly specific experience. His executive background spans public, private, and private equity-backed entities. He previously served as President and Chief Executive Officer of Presbia PLC, a publicly traded medical device company focused on ophthalmology. He also led NVISION Eye Centers, a PE-backed provider of surgical services, and served as Vice President and General Manager of Henry Schein Medical, a Fortune 500 healthcare distribution giant.

Phil Dingle, Managing Partner at the firm, emphasized the necessity of this background in today's climate. "Todd brings extensive healthcare operating experience and a practical understanding of the opportunities and challenges facing growing businesses," Dingle stated. "Through his leadership at Alatus Solutions, Custom Protect Ear, and Veridian Healthcare, we have seen firsthand the value he brings to our management teams. We are pleased to welcome him as an Operating Partner and look forward to his expanded involvement."

Sizing Up the Medical Device and Distribution Play

The strategic value of this appointment becomes even clearer when examining the firm's recent capital deployment. In 2023, the organization closed its fourth fund with $350 million in commitments, targeting control investments in businesses with enterprise values between $50 million and $250 million. With significant dry powder available, the hunt for new platform acquisitions and strategic add-ons is actively underway.

Cooper's deep background in medical devices and distribution will likely dictate the flavor of these upcoming acquisitions. The current portfolio already reflects a thesis built around fragmented healthcare supply chains and specialized products. Custom Protect Ear, acquired in 2022, manufactures proprietary hearing protection for industrial and military applications. Veridian Healthcare, added in 2021, provides home medical equipment—a rapidly growing segment driven by the overarching industry push toward home-based care. Alatus Solutions operates at the intersection of technology and claims management for workers' compensation.

Scaling these types of businesses requires a masterclass in logistics, channel management, and manufacturing efficiency. At Henry Schein, Cooper managed vast, complex medical distribution networks across the United States. Applying that Fortune 500 distribution playbook to lower middle-market companies like Veridian or Custom Protect Ear presents a massive opportunity for margin expansion and market share capture.

Furthermore, his experience taking a medical device company through the rigorous public markets at Presbia equips the firm with a critical eye for evaluating new device targets. The medical device sector is ripe for consolidation, but it is also fraught with regulatory pitfalls. Having an operator who has successfully navigated commercialization and regulatory approvals significantly de-risks the due diligence process for new platform investments.

The Future of Lower Middle-Market Value Creation

The evolving dynamic between private equity sponsors and their portfolio companies is moving away from purely financial oversight toward true operational partnership. Founders and management teams are increasingly scrutinizing their financial backers, seeking partners who provide not just capital, but actionable strategic guidance.

This collaborative approach is central to the modern value creation playbook. It is no longer enough to mandate growth targets from a boardroom; partners must be willing to roll up their sleeves and help optimize the supply chain, refine the go-to-market strategy, and recruit top-tier talent.

Reflecting on his expanded role, Cooper highlighted this synergy. "I have enjoyed working with the team and its portfolio company leaders, and I am excited to expand that relationship as an Operating Partner," he noted. "The collaborative approach and emphasis on operating experience align closely with how I work with businesses. I look forward to helping our management teams pursue their next stage of growth."

As the broader economy continues to navigate interest rate volatility and shifting consumer demands, the healthcare sector remains a resilient target for capital deployment. However, the winners in this next cycle will not be the financial engineers of the past decade. They will be the operational architects who understand how to build durable, efficient, and scalable businesses from the inside out.