Vālenz® Health Announces Next Phase of Growth With New Capital Partner, Kelso & Company
PHOENIX, Ariz. (June 21, 2023) — Vālenz® Health (“Valenz”) announced today a new equity investment from Kelso & Company (“Kelso”), a leading middle market private equity firm with a shared vision for accelerating positive change in the delivery of healthcare for the self-insured industry. Terms of the investment were not disclosed.
Valenz has a strong financial foundation secured by its initial investor Great Point Partners and further supported by its new partnership with Kelso. Valenz is exceptionally well positioned to continue its legacy as a disruptor in the healthcare ecosystem, bringing greater value to TPAs, providers, carriers, brokers, self-insured employers, and their members.
“We are excited to align with a capital partner who believes as intensely as we do in challenging the status quo of healthcare,” said Rob Gelb, Chief Executive Officer of Valenz. “Kelso instantly recognized the power of the Valenz Healthcare Ecosystem Optimization Platform and shares our commitment to ensuring deep data transparency across our transformative models of cost control, access, and member advocacy.”
The partnership with Kelso ensures a healthy future for Valenz, its 300+ employees and its growing customer base. “At Kelso, we are inspired by how Valenz solves challenges in the self-insured industry that others cannot. Their integrated ecosystem strategy, coupled with an expanding pipeline of point solutions, offers so many levers to accelerate growth and value for customers,” said Hank Mannix, Investment Partner. “We are thrilled to partner with a leadership team that dares to be great and approaches customer partnerships with a fundamental belief that smarter, better, faster healthcare is possible.”
With increased financial flexibility and partnership from Kelso, Valenz will further invest in organic and acquisitive growth, as well as its culture of innovation. “Expect key investments in our data warehouse, member-facing tools that simplify the complexities of healthcare, and new solutions to change the trajectory of rising health costs while creating delightful member experiences and ensuring strong, vigorous and healthy lives for everyone in our ecosystem,” Gelb said.
TripleTree, LLC acted as exclusive financial advisor to Valenz. Harris Williams acted as exclusive financial advisor to Kelso.
About Vālenz® Health
Vālenz® Health simplifies the complexities of self-insurance for employers through a steadfast commitment to data transparency and decision enablement powered by its Healthcare Ecosystem Optimization Platform. Offering a strong foundation with deep roots in clinical and member advocacy, alongside decades of expertise in the validation, integrity and accuracy of claims, and a suite of risk affinity solutions, Valenz optimizes healthcare for the provider, payer, plan and member. By leveraging data transparency and delivering an omnichannel approach across the healthcare journey, Valenz improves cost, quality and outcomes for employers and their members – engaging early and often for smarter, better, faster healthcare. More information is available at valenzhealth.com.
About Kelso & Company
Kelso & Company is one of the oldest and most established firms specializing in private equity investing. Since 1980, Kelso has invested approximately $19 billion of equity capital in 140 transactions. Kelso was founded by the inventor of the Employee Stock Ownership Plan (ESOP), and as a result, the principles of partnership and alignment of interest serve as the foundation of the firm’s investment philosophy. Kelso benefits from a successful investment track record, deep sector expertise, a long-tenured investing team, and a reputation as a preferred partner to management teams and corporates. Kelso has significant experience investing in healthcare and financial services. For more information, please visit kelso.com.