HealthPlanOne is the first investment for Peloton Equity, a newly-formed private equity firm focused on investing growth capital in lower middle market healthcare companies.
Shelton, Conn. – (December 15, 2014)
Peloton Equity, LLC (“Peloton”), a newly-formed healthcare focused private equity firm, announced today that it has invested growth capital and partnered with management to acquire a majority stake in Shelton, CT-based HealthPlanOne. Founded in 2006, HealthPlanOne is a leading technology-enabled digital marketing firm specializing in Medicare and individual and family health insurance sales and distribution. The Company operates two of the leading online health insurance marketplaces: HealthPlanOne.com and MedicareSolutions.com, where consumers can search for, compare, and enroll in a health insurance plan. In addition to serving consumers directly, HealthPlanOne also supplies high-quality digital leads, industry-leading prospect development technology, and complete member acquisition solutions to health insurance carriers and brokers. The Company also operates a private exchange, enabling employers to seamlessly transition their active employees and retirees onto defined benefit contribution plans.
Peloton's investment, which includes funding growth capital into the Company, is the first by the firm since its launch in August of this year. “We have known Bill Stapleton and followed the Company's progress for many years and have been impressed by HealthPlanOne's growth and the Company's ability to adapt to a changing market,” said Ted Lundberg, Partner at Peloton. “HealthPlanOne's technology-enabled services allow health plans to reach members much more cost effectively, which will be critical in an increasingly consumer-driven industry.”
Bill Stapleton, Founder and CEO, along with the Company's management team will retain significant ownership in HealthPlanOne and will continue to lead the Company. Bill Stapleton said, “We are very excited to work with Peloton as we prepare for our next phase of growth. Peloton's partners have excellent experience in building market leading healthcare companies and we look forward to leveraging their experience and broad network as we continue to grow the business.” Kevin Hill and Chan Wheeler, HealthPlanOne's independent Board members, invested alongside Peloton in the transaction and will remain on the Company's Board of Directors. Carlos Ferrer and Ted Lundberg, Partners at Peloton, will join HealthPlanOne's Board and the Company intends to add two additional board members with applicable industry expertise.
HealthPlanOne plans to use the growth capital from Peloton to further develop its internet and marketing services, private exchange and customer service capabilities. The Company believes that the health insurance market is transitioning from a largely institutional market to a consumer market and as such there is a significant opportunity for HealthPlanOne to connect insurance carriers with their ultimate customers, the health care consumer, and in the process educate and guide those consumers to make the best choices about their healthcare.
HealthPlanOne (http://www.healthplanone.com) is a leading technology-enabled digital marketing firm specializing in Medicare and individual and family health insurance sales and distribution. Through its digital marketing, proprietary technology and call center operations, the Company educates and acquires Medicare and individual and family members for its health insurance carrier and broker customers in a highly efficient and compliant manner. For more information please visit: www.healthplanone.com or www.medicaresolutions.com.
About Peloton Equity
Peloton Equity, LLC (http://www.pelotonequity.com) is a newly-formed private equity firm that focuses exclusively on growth capital investments in the lower middle market of the healthcare industry. Peloton's investment team has over 40 years of combined investing experience and has made investments across many major healthcare subsectors. Prior investments made by the Peloton investment team include K2M (NASDAQ:KTWO), Genova Diagnostics, Vitalize Consulting Solutions, Preferred Care Partners and Webmedx – a full list of prior investments can be found at www.pelotonequity.com. Peloton leverages its extensive healthcare network, value-building diligence and investment process, and portfolio management playbook to add value to its portfolio companies. Peloton seeks companies with between $20 and $200 million of revenue and the management team, market opportunity and business model to grow revenues meaningfully over the life of its investment.