Friday Health Plans secures $160 million
Friday Health Plans , a Denver-based health insurance holding company, has signed an agreement to receive a $100 million equity investment led by Vestar Capital Partners. Leadenhall Capital Partners, a London-based insurance-focused investment manager, will provide an additional $60 million in debt financing. Friday will leverage the additional funds to expand into new markets with a focus on technology-driven individual and small-group health insurance.
“This funding will not only allow us to offer health plans to more people but will also accelerate Friday’s technology innovation. Friday was built specifically for individuals seeking simplicity, practical health benefits, and great service – all at an affordable price. We’re able to offer that through a combination of efficient operational execution and consumer-centric technology.” – Sal Gentile, CEO of Friday Health Plans.
Friday Health Plans was started in 2015 by Mr. Gentile and David Pinkert, two health technology industry veterans. After the passage of the Affordable Care Act, the pair wanted to start a simpler, friendlier health insurance company, better designed for consumers not receiving health insurance from their employer. Friday currently serves more than 70,000 members in Colorado, New Mexico, Nevada and Texas, with plans to expand its offerings into multiple new states each year. Most of Friday’s health plans include $0 primary care visits, $0 mental health counseling, free generic drugs and free telehealth visits. Consumers can purchase the plans on the national or state-based health exchanges, through brokers, or directly on Friday’s website.
“Friday has proven its ability to run an efficient, technology-driven health plan in the consumer health insurance market, and with our investment, we’re excited to support the company as it grows its footprint. There’s great demand for affordable, customer-driven insurance, and expanding nationwide will help bring better insurance options to those who need it most.” – Norm Alpert, Co-President and Co-Founder of Vestar Capital Partners.
“Leadenhall is delighted to continue to support and further expand its successful partnership as Friday Health Plans grows its business. We are equally pleased to be supporting Friday as an innovative provider of affordable health insurance, bringing their plans to a wider group of individuals.” – Tom Spreutels, Head of Origination at Leadenhall Capital Partners.
Closing of the investment is expected to occur within 90 days and is contingent upon regulatory approval and the satisfaction of certain closing conditions. This funding follows $50 million in institutional funding Friday received from Peloton Equity, Leadenhall Capital Partners and the Colorado Impact Fund in 2019.
TripleTree, LLC acted as the exclusive financial advisor to Friday Health Plans for this transaction.