NEW YORK, June 13, 2023 — Golub Capital acted as Administrative Agent, Joint Lead Arranger and Joint Bookrunner on a unitranche facility in support of Warburg Pincus’s strategic investment in ParetoHealth. Great Hill Partners, which invested in ParetoHealth in 2019, will retain an equal stake to Warburg Pincus, alongside a significant continuing investment from the current management team. Terms of the deal were not disclosed.
ParetoHealth provides employer healthcare benefits solutions that enable small and midsized businesses to self-fund their health benefits.
Chip Cushman, Managing Director at Golub Capital, said, “We are thrilled to continue supporting ParetoHealth backed by two top tier sponsors with whom we have longstanding, valued partnerships.”
Golub Capital has been a lender to ParetoHealth since July 2021. This is the Firm’s ninth transaction with Warburg Pincus since 2020.
About Golub Capital Sponsor Finance
Golub Capital is a market-leading, award-winning direct lender and experienced credit asset manager. We specialize in delivering reliable, creative and compelling financing solutions to companies backed by private equity sponsors. The firm’s Direct Lending group provides buy-and-hold financing for sponsor-backed transactions with hold positions up to $700 million and arranges syndicated credit facilities up to $2 billion.
As of April 1, 2023, Golub Capital had over 800 employees and over $60 billion of capital under management, a gross measure of invested capital including leverage. The firm has lending offices in Chicago, New York, San Francisco and London. For more information, please visit golubcapital.com.
ParetoHealth forms and manages employee benefit group captives that mitigate the year-to-year volatility and risk inherent in self-insurance, thereby allowing employers to focus on reducing healthcare costs. Members of ParetoHealth captives gain access to an exclusive platform of risk management and cost-containment initiatives to help them provide high-quality and affordable healthcare to their employees. For more information, visit www.paretohealth.com.
About Great Hill
Founded in 1998, Great Hill Partners is a private equity firm targeting investments of $100 million to $500 million in high-growth companies across the software, digital commerce, financial technology, healthcare, and digital infrastructure sectors. With offices in Boston and London, Great Hill has raised over $12 billion of commitments and invested in more than 95 companies, establishing an extensive track record of building long-term partnerships with entrepreneurs and providing flexible resources to help middle-market companies scale. Great Hill has been recognized for its industry leadership, being ranked #3 on March 9, 2023 in the 2022 HEC Paris-Dow Jones Mid-Market Buyout Performance Ranking (published on March 9, 2023), which evaluated fund performance of 563 leading private equity firms between 2009-2018. In addition to ParetoHealth, Great Hill’s portfolio of healthcare companies includes Clearwave, IVX Health, Quantum Health, RetireeFirst, RxBenefits, and Vatica Health. Prior healthcare investments include bswift, PartsSource, Passport Health Communications, PlanSource, Qualifacts, and SterilMed.
About Warburg Pincus
Warburg Pincus LLC is a leading global growth investor. Founded in 1966, Warburg Pincus has raised 21 private equity and 2 real estate funds, which have invested more than $109 billion in over 1,000 companies in more than 40 countries. The firm has more than $80 billion in assets under management. Since inception, Warburg Pincus has invested over $16 billion in more than 180 healthcare companies and over $21 billion in more than 150 financial services companies. Notable healthcare investments include Alignment Healthcare, Ensemble Health Partners, Global Healthcare Exchange, Modernizing Medicine, Norstella, Quantum Health, Sotera Health, and Summit Health, and notable financial services investments include Aeolus Re, Arch Capital, Edelman Financial Engines, Fetch by The Dodo, Foundation Risk Partners, IntraFi Network, Kestra Holdings, K2 Insurance Services, McGill and Partners, and RenaissanceRe. 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. Follow us on LinkedIn.