Psilos Group

Albert Waxman and Stephen Krupa are the firm's Senior Managing Partners and make investment decisions together. Waxman founded the firm in 1998 after building the healthcare investment banking practice at Wasserstein Perella. Krupa joined as a partner early in the firm's history and has co-led the platform with Waxman for over two decades. The firm maintains a small partnership structure rather than a large investment committee.

Psilos sources through decades-long relationships with large healthcare payers, hospital systems, and a network of former portfolio company executives. Because the firm has invested exclusively in healthcare since 1998, its referral network includes senior operators at UnitedHealth, Aetna, and Cigna who see early-stage companies before generalist VCs do. The firm's regulatory thesis — that reimbursement policy creates investable opportunities — also draws inbound interest from entrepreneurs building around CMS rule changes that generalist investors rarely track.

Psilos makes direct equity investments, almost exclusively as a lead or co-lead with board representation. The firm does not operate a fund-of-funds program, nor does it allocate capital to external venture managers. Its limited partners commit directly to Psilos-managed funds, which invest in 15-25 portfolio companies per fund cycle.

Psilos invests from Series A through late-stage growth equity, with a heavier weighting toward growth-stage companies that have initial commercial traction with payers or providers. The firm occasionally writes seed checks when a founding team has deep insurance-industry experience but typically prefers to deploy $10 million to $30 million into companies with proven unit economics and regulatory clearance.

Psilos does not invest in biotechnology, pharmaceuticals, or traditional medical-device hardware that carries FDA Class III approval risk. The firm also avoids provider-facing clinical workflow tools that lack a reimbursement angle. Its public materials and portfolio history show no exposure to consumer wellness, elective medicine, or international healthcare delivery.

Psilos invests exclusively in healthcare and has done so since 1998 — predating nearly all 'healthtech' practices at generalist firms. Its partners model CMS reimbursement codes and Medicare rate-setting cycles as core diligence, skills that generalist venture investors do not build. The firm's returns are purposefully tied to healthcare regulatory economics rather than broad technology-adoption curves, which creates a different correlation profile for LPs.

No. Psilos is an independent partnership founded by Albert Waxman. While Waxman previously built the healthcare investment banking group at Wasserstein Perella, the firm has no ownership or strategic affiliation with any bank, insurer, or healthcare system. It raises its funds from institutional limited partners including pension funds, endowments, and fund-of-funds.