Warburg Pincus has agreed to invest $115 million in Alignment Healthcare. Based in Orange, California, Alignment, which is also backed by General Atlantic, is a population health management company.
March 08, 2017 08:00 AM Eastern Standard Time
ORANGE, Calif. & NEW YORK–(BUSINESS WIRE)–Alignment Healthcare (“Alignment”), a population health management company, today announced that Warburg Pincus, a global private equity firm focused on growth investing, has agreed to make a $115 million growth investment in the company. The financing will enable Alignment to accelerate expansion of its operations, bringing the power of Alignment’s unique care delivery model to more patients across the country.
Founded in 2013, Alignment Healthcare has created a new model of health care delivery that reduces costs and improves lives by driving patients, providers and payers toward a common goal of wellness. Alignment’s technology and integrated care coordination model improves the quality of care and eliminates waste in the care system through a focus on the highest-cost, most complex patients in Medicare Advantage, Medicaid, and commercial HMO populations. Alignment now serves more than 45,000 members across three states.
“We are proud to welcome Warburg Pincus as our partner and look forward to leveraging their deep expertise and network of relationships in the health care sector. Together with General Atlantic, we believe we have the two best health care financial partners in the world,” said John Kao, president and CEO of Alignment Healthcare. “This partnership will provide Alignment with growth capital to explore new strategic partnerships and acquisitions that will support our continued rapid growth.”
“We see a compelling market opportunity in the shift to coordinated, value-based care in the Medicare Advantage market,” said TJ Carella, managing director, Warburg Pincus. “John and the Alignment leadership team have successfully engineered a technology-enabled model that lowers costs and increases quality, while delivering superior clinical outcomes for patients. We look forward to supporting the company in its continued growth and expansion into new markets.”
General Atlantic partnered with Alignment in mid 2014, staging in capital over the subsequent two years to develop Alignment’s unique clinical and technology platforms, expand the leadership team, scale core operations, and secure foundational partnerships to initiate expansion into new markets.
“We are thrilled with Alignment’s impressive progress to date and continue to be excited about the significant opportunities in front of the company. It is a privilege to work with John and the Alignment team, and we are pleased to welcome Warburg Pincus as a new partner to support Alignment’s continued growth,” said Robbert Vorhoff, managing director at General Atlantic.
About Alignment Healthcare
Alignment Healthcare is redefining the business of health care by shifting the focus from payments to people. We’ve created a new model for health care delivery that cuts costs and improves lives by unraveling the inefficiencies of the current system to drive patients, providers and payers toward a common goal of wellness. Harnessing best practices from Medicare Advantage, Alignment’s innovative data-management technology allows us to focus on caring for seniors those who need it most: the chronically ill and frail. With offices and care centers across the country, Alignment Healthcare provides partners and patients with customized care and service where they need it and when they need it, including clinical coordination, risk management and technology facilitation. Alignment Healthcare offers HMO plan options to California residents through the Alignment Health Plan, and partners with select health plans in North Carolina and Florida to help deliver better benefits at lower costs. For more information, please visit www.alignmenthealthcare.com.
About Warburg Pincus
Warburg Pincus LLC is a leading global private equity firm focused on growth investing. The firm has more than $44 billion in private equity assets under management. The firm’s active portfolio of more than 140 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 16 private equity funds which have invested more than $60 billion in over 780 companies in more than 40 countries. Since inception, the firm has invested more than $9.7 billion in more than 150 healthcare companies. The firm’s current and past healthcare investments have included Bausch + Lomb, China Biologic Partners (CPBO), Coventry Health Care, Helix, Lepu Medical, Wright Medical and Zentiva. The firm is headquartered in New York with offices in Amsterdam, Beijing, Frankfurt, Hong Kong, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai and Singapore.
For more information, please visit www.warburgpincus.com.
About General Atlantic
General Atlantic is a leading global growth equity firm providing capital and strategic support for growth companies. Established in 1980, General Atlantic combines a collaborative global approach, sector-specific expertise, long-term investment horizon, and a deep understanding of growth drivers to partner with great management and build exceptional businesses worldwide. General Atlantic has more than 100 investment professionals based in New York, Amsterdam, Beijing, Greenwich, Hong Kong, London, Mexico City, Mumbai, Munich, Palo Alto, São Paulo, and Singapore. www.generalatlantic.com