New Mountain Capital has invested in HealthComp, the country’s largest Third Party Administrator of healthcare benefits for self-funded employers. HealthComp CEO Jose Rivero will remain in place. TripleTree provided financial advice to HealthComp on the deal.
FRESNO, Calif. and NEW YORK – HealthComp Holding Company LLC (“HealthComp” or “the Company”), a leading independent Third Party Administrator (TPA) of healthcare benefits for self-funded employers, announced today that the Company has partnered with New Mountain Capital, a leading growth-oriented investment firm with $28 billion in assets under management.
Founded in 1994 and headquartered in Fresno, California, HealthComp is the largest independent Third-Party Administrator (TPA) of healthcare benefits in the U.S., serving more than 400,000 members in the self-funded employer industry. The Company offers best in class technology for healthcare benefits administration, payment integrity and care management services to address the “dual mandate” in the U.S. healthcare system: reducing costs and improving clinical outcomes and experience for employees. As part of the transaction, HealthComp’s CEO and management team will remain in place and invested in the company.
“HealthComp is dedicated to transforming benefits management into an experience that employees and employers love, and we are excited to partner with New Mountain Capital to recognize our full potential as a market leader,” said HealthComp CEO Jose Rivero. “We expect to benefit from the team’s deep sector knowledge, growth-oriented philosophy, and highly relevant industry relationships, to set the stage for our continued growth acceleration. We thank Alpine Investors for their fantastic partnership, and we look forward to continuing to build the HealthComp platform with the support and strategic guidance of New Mountain Capital.”
“HealthComp’s strong track record of cost containment and unwavering commitment to improving clinical outcomes for employee populations creates the opportunity to build a leading, scaled platform in an attractive, growing market with significant upside potential,” said Matt Holt, Managing Director and President, Private Equity at New Mountain Capital. “New Mountain Capital’s deep experience in healthcare cost containment will allow HealthComp to capitalize on an unparalleled opportunity to leverage institutional knowledge to drive business building and increase value for customers.”
Kyle Peterson, Managing Director at New Mountain Capital, said, “HealthComp’s scale, track-record, and market reputation make it the ideal platform for the development of a next generation TPA model. We see significant opportunity to leverage New Mountain’s capabilities in data and analytics to drive core platform competencies and a unique commercial strategy. Further investment in an already robust technology platform with the expansion of cost and clinical management capabilities will drive best-in-class cost containment and employee experience for self-funded employers and their employees.”
TripleTree LLC served as exclusive financial advisor and Wilson Sonsini served as legal counsel to HealthComp in the transaction. Ropes & Gray LLP provided legal counsel to New Mountain.
For more than 25 years, HealthComp has been dedicated to transforming benefits administration. Bringing together concierge-level service, operational excellence, powerful analytics and cost management, HealthComp has built a solution that integrates seamlessly with any benefits ecosystem. HealthComp has offices in California, Illinois, West Virginia and Pennsylvania. Visit healthcomp.com.
About New Mountain Capital
New Mountain Capital is a New York-based investment firm that emphasizes business building and growth, rather than debt, as it pursues long-term capital appreciation. The firm currently manages private equity, public equity, and credit funds with $28 billion in assets under management. New Mountain seeks out what it believes to be the highest quality growth leaders in carefully selected industry sectors and then works intensively with management to build the value of these companies. For more information on New Mountain Capital, please visit www.newmountaincapital.com