Warburg Pincus, a global growth investor, has made an investment in Pareto Health Inc., an employee benefits platform and a portfolio company of Great Hill Partners.
Pareto Health uses its scale, captive membership and risk and cost management tools to diversify claims, reduce stop-loss premiums and provide healthcare services to employers. The investment looks to support Pareto Health’s mission of helping to make self-insurance accessible for small and mid-sized employers, reduce volatility and drive down the cost of healthcare. Great Hill Partners will retain an equal stake to Warburg Pincus, alongside a continuing investment from the current management team.
“Employers are facing rising costs, increased volatility from things like specialty drugs and gene therapies, and claims that now extend for years,” comments T.J. Carella, managing director and head of healthcare, Warburg Pincus. “This triple threat combines to make health insurance one of the most vexing challenges for employers.”
Triple Tree LLC acted as financial advisor to ParetoHealth. Goodwin Procter LLP and Kurtz & Revness LLP provided legal advice to the company and Kirkland & Ellis LLP and William Blair advised Warburg Pincus.