Warburg Pincus invests in ComplexCare

ComplexCare said Thursday that it has received $40 million in funding from private equity firm Warburg Pincus. According to the company, ComplexCare’s management will continue to hold a ‘significant” stake in it. ComplexCare is a New York-based health services company.


New York, NY, January 9, 2014 – ComplexCare Solutions, Inc. (”ComplexCare” or “the company”), a leading payer services company that specializes in providing risk assessment and care management services, today announced that an affiliate of Warburg Pincus, a leading global private equity firm focused on growth investing, has invested $40 million in the company to fund future growth initiatives. ComplexCare’s management team will continue to hold a significant interest in the company.
Since its founding in 2010, ComplexCare has developed into a fast-growing health services company in the $1 billion addressable market for outsourced risk assessment and care management services by providing in-home health risk assessments and care management services through a network of qualified interdisciplinary care teams. With an increasing demand from Medicare Advantage, Managed Long-Term Care, Managed Medicaid and other payers and providers to enhance delivery of care to high-risk members, the market for these outsourced services is expected to double over the next five years.
“This transaction with Warburg Pincus validates our leadership position in the market for health risk assessment and care management services,” said John Randazzo, Chairman, ComplexCare.
“By leveraging Warburg Pincus’ experience, expertise and growth capital, we will be able to accelerate the company’s long-term business plan by focusing on development initiatives, taking advantage of new market opportunities and executing on a track record of innovative payer, provider and patient services to meet the demands of the rapidly evolving healthcare marketplace,” added Mark Blackburn, Chief Executive Officer, ComplexCare.
“We have been impressed with ComplexCare’s growth and market expansion and we are excited to partner with John, Mark and the ComplexCare team,” said Elizabeth H. Weatherman, Managing Director and Head of the Healthcare Group, Warburg Pincus. “With ComplexCare’s strong core business and the continued increase of Medicare and Medicaid beneficiaries moving into privately-managed plans, we believe the company is well positioned for continued success.”
About ComplexCare Solutions
ComplexCare Solutions is a New York-based health services company with service centers in New York, NY, Rochester, NY, Albany, NY, Nashville, TN, and San Juan, Puerto Rico. The company specializes in face-to-face services for Medicare Advantage, Managed Long Term Care, Medicaid, Special Needs Plans, and commercial plan members. ComplexCare is focused on integrating the continuum of care for complex, frail, elderly, special needs, and dually-eligible individuals.
ComplexCare seeks to rebalance healthcare utilization from high cost undesirable institutional settings to lower cost home and community-based solutions. ComplexCare’s offerings provide interdisciplinary, member-centered assistance through every stage of care from acute hospitalization, to long-term management of chronic illnesses and comorbidities. ComplexCare currently provides assessment and care management services in 12 states and Puerto Rico. The ComplexCare Management Team also includes Randy Klein, President; and Orrin Feingold CFO/COO. For more information, please visit www.complexcaresolutions.com.
About Warburg Pincus
Warburg Pincus LLC is a leading global private equity firm focused on growth investing. The firm has more than $35 billion in assets under management. The firm’s active portfolio of more than 125 companies is highly diversified by stage, sector and geography. Warburg Pincus is an experienced partner to management teams seeking to build durable companies with sustainable value. Founded in 1966, Warburg Pincus has raised 13 private equity funds which have invested more than $45 billion in over 675 companies in more than 35 countries.
Since inception, the firm has invested more than $8.5 billion in more than 145 healthcare companies, including investments in American Medical Systems, Bausch + Lomb (acquired by Valeant in 2013), Coventry Health Care (NYSE: CVH), Eurand (acquired by Axcan in 2011), Euromedic International (acquired by Merrill Lynch Global Private Equity and Ares Life Sciences in 2008), JHP Pharmaceuticals, Lepu Medical Technology (SHE: 300003), RegionalCare Hospital Partners, ReSearch Pharmaceutical Services, Tornier (NASDAQ: TRNX) and Zentiva (acquired by sanofi-aventis in 2009).
The firm is headquartered in New York with offices in Amsterdam, Beijing, Frankfurt, Hong Kong, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo and Shanghai. For more information please visit www.warburgpincus.com.