June 21, 2023
GREENWICH, CT – Great Point Partners (“GPP”), a Greenwich-based private investment firm focused exclusively on the health care industry, today announced that it has exited its investment in Vālenz® Health (“Valenz”) to Kelso & Company (“Kelso”), a New York-based private equity firm, after growing revenue close to 30% per year during a six-year partnership.
Since partnering with Great Point Partners in 2017, Valenz grew its enterprise value by over 700% and completed eight tuck-in acquisitions primarily sourced by GPP, including Zebu Compliance Solutions and Kozani Health. GPP also supported the Company’s establishment of an experienced Board of Directors in the payment integrity space.
“We selected Great Point Partners as our partner because of the firm’s expertise in the payment integrity field, track record of investment success with founder owned businesses and deep commitment to both advancing and improving the health care industry,” said Josh Carder, Founder and Chairman of Valenz.
“GPP leveraged its broad network of advisors fostered through its experience with prior investments in the payment integrity field to transform our business through strategic M&A, ultimately growing Valenz’s revenue by over 500%,” added Rob Gelb, Chief Executive Officer of Valenz. “We’re grateful for their help in scaling our business and our partnership with GPP.”
“Rob was a visionary leader also capable of handling the chess board of operational complexities associated with explosive growth,” added Dr. Jeffrey Jay, Founder of Great Point Partners.
Over a six-year period, GPP, in partnership with Rob Gelb, CEO, and the Valenz Management Team, expanded Valenz’s distribution channel and increased its existing market penetration to support the Company in addressing many key market challenges of the self-insured industry, including the lack of transparency within medical costs and wide variances in reimbursement rates.
“We are proud of the accomplishments the collective GPP and Valenz team has made in expanding Valenz’s footprint, strengthening its network, and fostering growth opportunities for the future,” said Noah Rhodes, Managing Director and Head of Private Equity at GPP. “We appreciate the importance of the payment integrity sector in simplifying and improving access to health care, and we look forward to seeing Valenz continue to grow in its next chapter,” added Eddie Hjerpe, Senior Vice President.
Since 2007, GPP has partnered with two providers of payment integrity solutions to the healthcare industry, Equian and Valenz. GPP exited Equian in 2015, after sourcing and completing eleven add-on acquisitions, arranging multiple debt financings for acquisitions as well as a dividend recapitalization, and increasing EBITDA more than ten-fold.
This transaction was advised by TripleTree.
About Great Point Partners
Great Point Partners, founded in 2003 and based in Greenwich, CT, is a leading health care investment firm with 30 professionals, investing in the United States, Canada, and Western Europe. GPP is currently making new minority and majority private equity investments from GPP IV. Great Point manages over $1.9B of capital in its private funds and public life sciences equity strategy (BioMedical Value Fund). Great Point Partners has provided growth equity, growth recapitalization, and management buyout financing to more than 200 growing health care companies. The private equity funds invest across all sectors of the health care industry with a particular emphasis on biopharmaceutical services and supplies, alternate site care, medical device contract manufacturing and information technology enabled businesses. The firm pursues a proactive and proprietary approach to sourcing investments and tuck-in acquisitions for its portfolio companies.
Vālenz® Health is a leading medical cost containment firm and industry disruptor with 300+ employees dedicated to simplifying complexities of self-insurance for employers through a steadfast commitment to data transparency and decision enablement powered by its Healthcare Ecosystem Optimization Platform. Offering a strong foundation with deep roots in clinical and member advocacy, alongside decades of expertise in the validation, integrity and accuracy of claims, and a suite of risk affinity solutions, Valenz optimizes healthcare for the provider, payer, plan, and member. By leveraging data transparency and delivering an omnichannel approach across the healthcare journey, Valenz improves cost, quality and outcomes for employers and their members – engaging early and often for smarter, better, faster healthcare. More information is available at valenzhealth.com.