Pareto Health, an employee benefits group captive manager, has completed a recapitalisation with Great Hill Partners, a growth-oriented private equity firm.
The investment will allow the company to significantly expand its geographic footprint, sales and marketing, and industry-leading cost containment efforts.
Its member-owned captives offer features such as maximum renewal increases and no stop-loss lasers after a company joins the captive.
The company partners with a select group of benefits brokers and consultants to educate employers about the benefits of group captives.
In addition to Pareto Health, Great Hill Partners' portfolio of healthcare companies includes Vatica Health, Quantum Health, PartsSource, RxBenefits, and Qualifacts. Prior healthcare investments include PlanSource, bSwift, Passport Health Communications, and SterilMed.
Andrew Cavenagh, founder and CEO of Pareto said: "Businesses with 50 to 500 employees face skyrocketing healthcare costs and most don't know why or what to do about it.”
He continued: “Our proven solutions help companies escape the cycle of inexplicable premium hikes and save real dollars while providing benefits tailored to their employees."
Rafael Cofiño, Partner at Great Hill explained: "Our investments in the self-insured ecosystem have demonstrated the value that self-insurance provides to employers while highlighting the obstacles that small and medium-sized businesses encounter if they try self-funding on their own.”
He added: “Pareto solves these challenges while providing employers with best-in-class cost containment solutions to help the companies take control of their healthcare costs."
