2016 Year-End Review
2016 was another year of high activity and significant milestones:
- Fund V raised and closed at $1.0 billion “hard cap”
- Three platform investments – Zelis Healthcare, Oasis Financial and BillingTree
- Six add-on acquisitions at four portfolio companies
- 16 C-suite executives at 10 portfolio companies
In the face of volatile capital markets and an unprecedented and unpredictable political climate, we stay focused on our core tenants – collaboration with management teams to build leading-edge companies through the development of long-term investment theses and corporate strategies; the sourcing, execution and integration of acquisitions; optimization of human capital; and the build-out of corporate infrastructure and go-to-market strategies in our core financial services, healthcare services and business services sectors.
- Zelis Healthcare (“Zelis”; www.zelis.com) delivers a powerful and unique end-to-end technology platform addressing the claims cost containment and payments needs of healthcare payors including large and medium-sized health plans, TPAs, Taft-Hartley Plans, providers and patients. It is the resultant combination of four leading HCIT businesses – Stratose, Premier Healthcare Exchange, GlobalCare and Pay-Plus Solutions in early 2016. We are excited to have recruited CEO Doug Klinger, former President of Sears’ Health and Wellness Solutions and President of CIGNA Health Services, and to also be partnering with other senior managers of the businesses who share common vision around the opportunity to service customers.
- BillingTree (www.billingtree.com) is the leading provider of omni-channel, integrated payment solutions to the healthcare, ARM and financial services industries. Through its technology-enabled suite of products and services, including a proprietary gateway and customer portal, BillingTree enables organizations to increase efficiency and decrease the costs of payment processing while adhering to compliance regulations. We partnered with CEO Edz Sturans and a highly entrepreneurial management team to accelerate the growth of the business by expanding their core verticals and technological capabilities.
- Oasis Financial (“Oasis”; www.oasisfinancial.com) is the nation’s leading plaintiff pre-settlement legal finance company providing non-recourse funding to claimants, primarily arising out of auto accidents and work-related injuries. The Company was founded in 2002 and has been a pioneer in pre-settlement funding. Oasis has made significant investments in technology and infrastructure, branding and marketing and business process improvements to enable efficient yet rigorous underwriting and servicing. We partnered with industry veteran Ralph Shayne and his management team and are excited about both growing the existing account base and expanding into adjacent markets.
On the team front, Kurt Brumme was promoted to Principal, Tom Hough to Vice President and both Hemal Patel and Matt Wender to Senior Associate. We’ve welcomed Paul Marnoto as General Counsel from K&L Gates and Claudio Antonini as Director of IT Strategy and Implementation from E&Y, both new positions to the firm and reflective of our growth and our portfolio. Simon Babakhani also joined from Oliver Wyman as an associate.
Our primary investment criteria include:
- Equity investments of $25 million to $150 million per transaction and total enterprise value of $35 million – $500 million
- Industry focus on technology enabled service business models
- Financial and insurance services
- Healthcare services
- Business, information and technology services
- Common criteria: recurring revenue streams, high intellectual property content, information or technology-intensive operations, route-based businesses
- Buy-and-build situations
- 2/3’s of our portfolio is highly acquisitive, averaging eight add-ons per company
We continue to focus on key themes where we have substantial experience and expertise, including sectors recovering from regulatory assault; incomplete management teams and/or complicated management succession dynamics; aggressive buy-and-build strategies; and disruptive technologies and first movers. Our experiences and resources allow us to move quickly and work closely with operators to understand complex situations and to optimally position and build businesses.
Thank you for all your help and support. Our partnerships with you are essential to our business, and we look forward to working with you in 2017. Don’t hesitate to reach out to any member of the Parthenon Capital Partners team. And if in Boston or San Francisco, please stop by to see us.