November 20, 2020
Quantum Health, the industry-leading consumer healthcare navigation and care coordination company, announced today a significant investment from Warburg Pincus, a leading global private equity firm focused on growth investing. Great Hill Partners, which invested in Quantum Health in 2017 and is the company’s current majority shareholder, will retain a significant stake. This investment will further accelerate Quantum Health’s investment in its technology platform and service delivery capabilities, as the company continues to provide high quality services to its growing customer base of self-insured employers.
“We look forward to partnering with Warburg Pincus, whose successful track record and experience in the healthcare and technology sectors will benefit our company as we continue to grow our business and deliver best-in-class services to our customers,” said Kara Trott, Founder and CEO of Quantum Health. “We are equally excited to continue our relationship with Great Hill Partners, who have greatly contributed to accelerating our strategy and growth. We are confident that partnering with these two marquee investors will enable us to further innovate, while we continue to provide our differentiated member experience and reduced healthcare costs for employers.”
Driven by its proprietary Real Time Intercept™ model, Quantum Health’s guided experience engages members and healthcare providers early in the healthcare journey, reducing complexity and costs for members and resulting in significant cost savings for employers. The company offers a simplified healthcare experience to more than 1.7 million plan participants across more than 400 employers. Member experience is central to Quantum Health, as evidenced by the company’s industry-leading Net Promoter Score (NPS) of 76.
“Quantum Health has built a premier platform enabling customers to seamlessly navigate the often complex healthcare ecosystem,” said TJ Carella, Managing Director at Warburg Pincus. “We look forward to partnering with Great Hill Partners, Kara and the rest of the management team to accelerate the company’s mission and strategy.” Andrew Park, Managing Director at Warburg Pincus, added, “Quantum Health is uniquely positioned to reduce healthcare costs for the more than 100 million self-insured lives across the country, while providing a highly valued service to consumers, providers and employers. Warburg Pincus’ investment in Quantum Health underscores our ongoing commitment to the healthcare and technology sectors. We are excited to work with the team on the company’s next chapter.”
As the industry founder with over twenty years of experience, Quantum Health has remained committed to helping consumers navigate their healthcare journeys, resulting in better health outcomes and cost savings for self-insured employers and their employees. More than a decade of independent actuarial analyses show that Quantum Health’s clients achieve an average of 14.4% cumulative claims savings after five years. “Our past few years of partnership with Quantum Health have only strengthened our conviction in the company’s mission and approach, as well as the tremendous opportunities still ahead of the team,” said Mark Taber, Managing Partner at Great Hill Partners. “Quantum consistently delivers unparalleled results in conjunction with an experience that consumers, employers, and providers love.” Rafael Cofiño, Partner at Great Hill Partners, added, “We are thrilled to continue the journey with Kara and the entire Quantum team and are pleased to welcome Warburg as a new partner as we help solidify Quantum Health’s position as a category-defining business that changes the way consumers experience the healthcare decision-making process.”
Kara Trott will remain Chair of the Board of Directors. TJ Carella and Andrew Park will join the Board along with current Directors Mark Taber and Rafael Cofiño.
William Blair & Company, LLC, acted as exclusive financial advisor to Quantum Health. Goodwin Procter provided legal advice to the company and Kirkland & Ellis advised Warburg Pincus. Financial terms of the transaction were not disclosed.
Great Hill Partners is a Boston-based private equity firm targeting investments of $25 million to $500 million in high-growth companies across the consumer, digital infrastructure, financial technology, healthcare, and software sectors. Over the past two decades, Great Hill has raised nearly $8 billion of commitments and invested in more than 75 companies, establishing an extensive track record of building long-term partnerships with entrepreneurs and providing flexible resources to help middle-market companies scale. In addition to Quantum Health, Great Hill’s portfolio of healthcare companies includes Pareto Health, PartsSource, RxBenefits and Vatica Health. Prior healthcare investments include bswift, Passport Health Communications, PlanSource, Qualifacts and SterilMed. For more information please visit www.greathillpartners.com.
Warburg Pincus LLC is a leading global private equity firm focused on growth investing. The firm has more than $56 billion in private equity assets under management. The firm’s active portfolio of more than 190 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 19 private equity funds, which have invested more than $86 billion in over 910 companies in more than 40 countries. Warburg Pincus is a leading investor in healthcare and technology, focused on thesis-driven growth at scale. Since its inception, the firm has invested in excess of $11 billion and $21 billion into healthcare and technology companies, respectively. Current healthcare and healthcare IT investments include: Alignment Healthcare, Experity, Intelligent Medical Objects, Modernizing Medicine, Outset Medical, Qualifacts, SOC Telemed, Summit CityMD and WebPT. The firm is headquartered in New York with offices in Amsterdam, Beijing, Berlin, Hong Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai, and Singapore. For more information please visit www.warburgpincus.com.