Town Hall Ventures raises $115 mln for inaugural fund


Town Hall Ventures has closed its debut fund at $115 million. The fund will focus on investing in the health care of underserved communities. In addition to the fund-closing, the firm has also named Ann Hickey as a vice president.

PRESS RELEASE

(NEW YORK and MINNESOTA) – Town Hall Ventures, a firm built to address the health care challenges of the most vulnerable Americans, is pleased to announce they have closed their first fund. The Fund and its Limited Partners, representing multiple leading non-profit health systems and payors, along with transformational entrepreneurs, executives, and investors, have coalesced around a strong mandate to direct millions of dollars to invest in communities that have long been ignored.

Town Hall’s founding partners Trevor Price, Andy Slavitt, and David Whelan announced the firm’s formation on May 7, 2018, commenced fundraising soon after, and closed their first fund recently at $115M – exceeding the target size by more than 50%. Town Hall has brought together four of the five largest non-profit health systems and non-profit health payors that together serve 23 million individuals in 42 states; in addition to the Limited Partner commitments from entrepreneurs, executives, and investors who all share a deep commitment to building great companies serving vulnerable populations. The firm is being built on a foundation of broad and deep expertise in building companies to improve care in Medicare, Medicaid, and risk-based care, and in addressing complex conditions and social determinants of health. These areas of focus touch almost 120 million Americans and approximately $1.2 trillion in annual health care spending.

“Solving problems for the most complex conditions and populations will require the greatest minds in health care to work together to build exceptional companies. Town Hall has assembled a community of activated and engaged institutions, executives, and entrepreneurs that gives us the best possible chance to drive change and impact across the health care system,” said Trevor Price, General Partner of Town Hall Ventures and CEO of Oxeon Partners. “We believe this represents a major turning point in shifting resources and innovation focused on populations that have long been ignored.”

Town Hall Ventures also announced that Ann Hickey has joined the firm as a Vice President. Ann brings substantial investment and first-hand operating experience from her roles at Audax Group, Oak Hill Capital Partners, Castlight Health, and, most recently, Archimedes Health Investors. Ann has dedicated her career to helping build and scale innovative, technology- enabled health care services companies and shares Town Hall’s passion for transforming care delivery for underserved populations.

“We couldn’t be more excited to have Ann join the team as an investment-focused Vice President. Town Hall’s commitment to building great companies begins with building a great team with diverse thoughts and capabilities. Ann brings depth, intelligence, experience, and great values to our team and has already had an enormous impact,” said Andy Slavitt, Town Hall’s Founder and General Partner.
In addition to announcing the closing of the Fund and the addition of a new team member, Town Hall is pleased to announce new investments in three companies that operate at the core of the firm’s mission. Specific new investments include:

Landmark Health, LLC, provides home-based care to high-acuity Medicare, Medicaid, and Dual Eligible populations who are frail and chronically ill. Landmark’s new CEO, Nick Loporcaro, was recruited by Trevor Price and Oxeon Partners, and the company is backed by General Atlantic and Francisco Partners.

Bright Health, Inc., a technology-enabled health insurance plan that is built in partnership with leading health systems. Bright’s CEO is Bob Sheehy, former CEO of UnitedHealthcare, and the company is backed by NEA, Bessemer Ventures, and Flare Capital Partners.

Strive Health, LLC, a leading provider of chronic kidney disease solutions, focused on transforming health care and patients’ lives through early engagement, comprehensive coordinated care, and expanded treatment options. The company’s co-founder and CEO is Chris Riopelle. The concept for the business was developed with the co-founders inside the Oxeon Venture Studio and backed by lead investor NEA.

Bob Sheehy, CEO and Founder of Bright Health, said, “Town Hall offers a special proposition when considering investment partners for our high growth company. Andy, Trevor, and David all bring unique and complementary areas of expertise and we are thrilled to work with them.”

These investments, along with Town Hall’s prior investments, are the foundation of an investment portfolio seeking innovative solutions to serve urban dual eligibles, the elderly, and individuals facing chronic conditions such as kidney disease. Existing investments include:
Cityblock Health, Inc., provides primary care, behavioral health, and human services to address unmet health and social needs in urban populations.
Somatus, Inc., an innovative company revolutionizing treatment and new models of care for patients with chronic kidney disease and end stage renal disease, is shifting the industry from fee for service to value based models of care.
Welbe Health, LLC, a provider of integrated medical and social services to frail seniors who qualify for PACE.
Aetion, Inc., a provider of real-world analytics and evidence to help biopharma companies and payors better understand how drugs work in the real world to enable value-based care.

“We are pleased to have raised the Fund in four months with commitments by strategic Limited Partners that have the ability to change the delivery of care for millions of people, including four of the five largest non-profit health systems and non-profit health payors serving 23 million individuals. Together with the investor commitments made by a diverse group health care leaders, Town Hall Ventures is uniquely placed to drive value creation for our current and future portfolio companies,” said David Whelan, Founder and General Partner at Town Hall Ventures. “We look forward to working with strong entrepreneurs in building great companies, including our latest investments in Landmark Health, Bright Health, and Strive Health.”

The Town Hall Ventures team brings a commitment to public service, extensive business experience, and a strong track record in founding, investing in, and leading highly successful companies that have made a national imprint on our health care systems. Town Hall Ventures is led by Andy Slavitt, former Administrator of the Centers for Medicaid and Medicare Services (CMS) and Group Executive Vice President of Optum; Trevor Price, Founder and CEO of Oxeon Holdings – the parent company to Oxeon Partners, a retained executive search firm – and Oxeon Ventures, an investment firm and venture studio; and David Whelan, Managing General Partner of predecessor firm Oxeon Ventures and former General Partner and CFO of investment firm Accretive LLC.

PE Hub Healthcare Wire delivers private equity and M&A healthcare deal activity, fundraising news, people moves, regulatory updates and much more every Thursday. Subscribe now! It’s FREE.

Take your pick!

  • Buyouts delivers exclusive news and analysis about private equity deals, fundraising, top-quartile managers and more. Get your FREE trial or subscribe now.
  • VC Journal provides exclusive news and analysis about venture capital deals, fundraising, top-quartile investors and more. Get your FREE trial or subscribe now.

PE Hub Healthcare Wire delivers private equity and M&A healthcare deal activity, fundraising news, people moves, regulatory updates and much more every Thursday. Subscribe now! It’s FREE.