What Heritage Group does

Heritage Group is a Nashville, Tennessee-based private equity firm founded in 1986 by healthcare entrepreneurs Rock Morphis and David McClellan. The firm manages approximately $1 billion of assets under management across four private equity funds — Fund III closed at $300 million in January 2021 and Fund IV closed at $370 million in July 2025 — and invests growth equity in healthcare services, healthcare IT, medical devices, and diagnostics companies. Its distinctive model is being strategically backed by a coalition of leading U.S. healthcare organizations (including HCA Healthcare, AdventHealth, Advocate Aurora Health, Banner Health, Trinity Health, Intermountain Health, Cardinal Health, Cigna, and multiple Blue Cross Blue Shield plans) that serve as limited partners and provide deal flow, diligence, and operating support to portfolio companies.

The firm generates revenue through standard private equity fund economics — recurring management fees on committed/invested capital plus carried interest on realizations — and does not sell any proprietary technology products or services. Its distribution is direct enterprise relationships with institutional limited partners. Heritage Group has invested in 30+ portfolio companies including Upward Health, Monogram Health, Connections Health Solutions, Wellvana, Valera Health, Equum Medical, AvaSure, TwelveStone Health Partners, and Nationwide Medical. In a notable diversification move in February 2026, the firm acquired FORTA Corporation, a synthetic fiber reinforcement company for construction, from Riverarch Equity Partners — its first documented platform acquisition outside of healthcare.

Heritage Group is founder-controlled, employs 11–50 professionals (with co-founders still involved), and is governed alongside a 2023-launched Executive Advisory Board. The firm also operates the Meharry-Heritage Fellowship with Meharry Medical College to advance health equity and source from underrepresented entrepreneurs. Geographic operations are domestic (United States), with a single Nashville headquarters at 10 Burton Hills Blvd, Suite 250.

Name

Heritage Group

Legal name

Heritage Group

Website

http://heritagegroupusa.com

Company type

Private

Founded year

1986

Operating status

Operating

Headcount range

11–50 employees

Short description

Heritage Group is a Nashville-based private equity firm founded in 1986 that invests growth equity in U.S. healthcare companies, managing approximately $1 billion across four funds and partnering with leading health systems, payers, and service providers as strategic limited partners and operating support for its portfolio.

Ownership category

akta.pro rank

Headquarters

HQ city

Nashville

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Others

Revenue model

1. Private Equity Fund Management: Heritage Group generates revenue through management fees and carried interest (performance fees) from its private equity funds. The firm has raised four funds: Fund I, Fund II (implied), Fund III ($300M, oversubscribed, launched 2021), and Fund IV ($370M, closed 2025), with approximately $1B in total assets under management. Returns flow to limited partner investors while the firm earns fees based on committed capital and fund performance.

Pricing tiers

Go-to-market motion1 record

Distribution channels1 record

Marketing channels2 records

Core offering

Heritage Group is a healthcare-focused private equity firm that manages approximately $1 billion across four private equity funds, making growth equity investments in healthcare services, healthcare IT, medical devices, and diagnostics. The firm partners with leading healthcare organizations—including health systems, payers, and service providers—as strategic investors who actively support portfolio companies across the investment lifecycle. Heritage Group provides growth capital and strategic guidance to growth-stage healthcare innovation companies addressing the industry's most pressing challenges.

Product overview

Heritage Group is a healthcare-focused private equity firm, not a product/technology company. The firm was founded in 1986 by experienced healthcare entrepreneurs and operates as an investor partner, backing innovative healthcare companies. Heritage Group manages approximately $1 billion across four funds and partners with leading healthcare organizations to build solutions addressing healthcare's greatest challenges. The firm does not offer its own technology products or services for sale.

Differentiator

Problem solved

Functional benefit

Products and services

• Heritage Group Fund III
• Heritage Group Fund IV
• Heritage Group Strategic Engagement Service

Named customers10 records

Segments2 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

One partnership is on record.

• Meharry Medical CollegecoreStrategic or Co-development PartnerHeritage Group partners with Meharry Medical College to advance health equity, empower diverse populations, and support minority-owned businesses. The centerpiece of the partnership is the Meharry-Heritage Fellowship, which enables the firm to work with underrepresented entrepreneurs and students to innovate towards a more diverse and equitable future.

Scale indicators5 records

Recent moves6 records

Expansion highlights5 records

Direct peers

• Waud Capital Partners: Healthcare-services-focused growth equity investor of similar fund size and sector concentration to Heritage Group.
• Pharos Capital Group: Healthcare-focused PE firm based in Nashville/Dallas with comparable mid-market healthcare services focus; an alumnus (Kevin Ryan) previously worked at Pharos before joining Heritage.
• Summit Partners: Healthcare and technology growth equity firm with comparable growth-stage healthcare investments and similar fund-size profile.
• Linden Capital Partners: Healthcare-only middle-market private equity firm, comparable in fund size and healthcare-services focus to Heritage Group.
• New Mountain Capital: Healthcare-services-focused growth equity firm of similar scale and stage focus to Heritage, investing in value-based care and healthcare services companies.
• GTCR: Healthcare growth equity investor and co-investor with Heritage (e.g., Equiti); operates a similar strategic-partner-driven model with a Leaders Strategy approach.
• Ascension Ventures: Strategic healthcare venture fund affiliated with a major U.S. health system — comparable to Heritage in strategic-LP model and healthcare services focus (an alumnus, Ben Burnside, came from here).
• Welsh, Carson, Anderson & Stowe: Healthcare-focused growth equity and buyout firm with deep strategic-LP relationships and multi-decade track record — directly comparable to Heritage in vertical focus and fund scale.

Broad incumbents

• KKR Healthcare Strategic Growth: Scaled global alternative asset manager with a dedicated healthcare growth strategy — competes for similar assets but with materially larger fund capacity and broader sector mandate.
• Bain Capital Life Sciences: Healthcare and life-sciences-focused platform of Bain Capital, with comparable growth-stage healthcare investments but materially larger fund sizes.

Market position

Strengths4 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights6 records

Customer concentration

• LinkedInlinkedin.com/company/heritage-group-llc

Revenue estimate

Valuation estimate

Number of profiles

Profiles16 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments60 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Heritage Group