Stone Point invests in Allied Benefit Systems

Stone Point Capital has made an investment in Allied Benefit Systems, an independent third-party administrator of group health benefits to self-insured employers.

Stone Point Capital has made an investment in Allied Benefit Systems, an independent third-party administrator of group health benefits to self-insured employers. No financial terms were disclosed. Houlihan Lokey served as financial advisor to Allied on the deal.

PRESS RELEASE

CHICAGO, Feb. 18, 2021 /PRNewswire/ — Allied Benefit Systems, LLC (“Allied” or the “Company”), a leading independent third-party administrator of group health benefits to self-insured employers, today confirmed that it has received a strategic investment from funds managed by Stone Point Capital LLC (“Stone Point”). Stone Point was attracted to Allied based on its leading market position, strong track record of organic growth and best-in-class member service. Allied’s management team will continue to lead the Company and execute on its long-term growth strategy.

Founded in 1980, Allied provides customized benefits solutions, medical management and cost control strategies to over 9,000 self-insured employer groups across the U.S. The Company offers a broad array of network options, pharmacy solutions and care management strategies to enable its customers to reduce costs and drive improved member satisfaction.

“We [Allied] are thrilled to partner with Stone Point as we enter our next phase of growth.” Allied CEO, Mitch Wilneff.

“We are thrilled to partner with Stone Point as we enter our next phase of growth. Stone Point’s network of relationships across the employee benefits brokerage and insurance ecosystems is second to none, and we look forward to working together to create value for our clients, partners and the members we serve,” said Allied CEO, Mitch Wilneff.

“We share management’s enthusiasm regarding the partnership. Allied’s team has built an outstanding business with an impressive lineup of relationships with top carriers, employee benefit brokers and co-sourcing partners,” said Chuck Davis, CEO of Stone Point. “We believe that the group health TPA market is poised for consolidation, and the Company’s full suite of innovative cost containment solutions, designed to help clients combat rising healthcare costs, will position the Company for continued success.”

Houlihan Lokey served as financial advisor to Allied and DLA Piper LLP served as its legal advisor. Kramer Levin Naftalis & Frankel LLP served as legal advisor to Stone Point.

About Allied Benefit Systems, LLC
Allied is a national healthcare solutions company that supports healthy workplace cultures. Founded in 1980, Allied has grown to be one of the largest, independent third-party administrator in the United States.
With healthcare designed for people, employers never have to choose between price and the best-fit insurance products to protect employees and their families. Allied customizes self-insurance benefits solutions to align with individual choice and organizational need while integrating medical management innovations and cost-control strategies.

About Stone Point Capital LLC
Stone Point Capital LLC is a financial services-focused private equity firm based in Greenwich, CT. The firm has raised and managed eight private equity funds – the Trident Funds – with aggregate committed capital of approximately $26 billion. Stone Point Capital targets investments in companies in the global financial services industry and related sectors. For more information, please visit www.stonepoint.com.