Ibrahim is now a managing director with Spindletop Capital Management where he works on larger healthcare deals, executives for both firms said. Ibrahim was a principal at Riverside and left the middle market firm over the summer.
“Joseph brings deep healthcare services operating expertise and significant transaction experience which complements the Spindletop team,” said Evan Melrose, the firm’s founding managing partner. “We’re looking forward to building out our later-stage practice.”
Launched in 2011, Spindletop focuses on all sectors of healthcare including medical devices, diagnostics and healthcare IT, specialty pharmaceuticals and biotechnology. Spindletop targets growth and lower middle market buyout opportunities, as well as late stage VC as long as its commercial, Melrose said. The Austin-based investment firm typically focuses on companies with $5 million to $20 million EBITDA, he said.
Spindletop represents the healthcare investments of the Duncan and Alkek families, Melrose said. The Duncan family has a net worth of $25.4 billion, according to Forbes, which lists them as the tenth richest family in the U.S. The Alkek Foundation, of Houston, has provided more than a $100 million in support to Baylor College of Medicine, also of Houston.
The Duncan and Alkek families are two of largest supporters of healthcare in the Texas region, Melrose said. “They’re our partners and we’re investing on their behalf,” he said.
Both families made their fortunes in energy. The name Spindletop Capital refers to the legendary oil geyser that erupted in 1910 from a drilling site in southeastern Texas. The gusher reportedly produced nearly 100,000 barrels of oil a day. Many major oil companies, including Exxon and Texaco, can trace their origins back to Spindletop.
Spindletop Capital has a “permanent capital base that is flexible,” Melrose said. The Duncan and Alkek families invest in all the Spindletop deals, he said. “We’re doing it on behalf on Duncan and Alkek, and the other Texas families and endowments that want to come along and join us,” Melrose said.