Leadenhall Capital Partners led the latest round of capital with multiple partners
DENVER , May 25, 2022 /PRNewswire/ -- Friday Health Plans Management Services Company, Inc., ("Friday") a Denver-based health insurance holding company, announced today that it has signed an agreement for $70 million of equity investment led by Leadenhall Capital Partners ("Leadenhall"). Vestar Capital Partners, Peloton Capital Partners and other partners also contributed to this latest investment. Leadenhall will also provide $50 million in debt financing.
Following 400% membership growth year over year for the last two years, Friday will leverage the funds primarily to support expansion into new Affordable Care Act marketplaces.
"More people are finding value in our simple, practical health plans designed for people who don't get insurance through their employer," said CEO of Friday Health Plans, Sal Gentile. "We are built specifically to give them great health benefits and superior service – all at an affordable price. And we're able to do this because we focus solely on serving this growing consumer segment."
Friday currently serves more than 330,000 members across seven states with an estimated $1.95 billion in gross premium revenue for 2022. Most of Friday's health plans include unlimited $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.
"Having worked with the management team at Friday for a number of years, we have observed their expertise in bringing affordable health protection to a growing number of people. We are excited about supporting the future growth prospects of the company through this capital round," said Tom Spreutels, Managing Partner at Leadenhall.
Friday Health Plans was started in 2015 by Sal 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.
With headquarters in Denver, Colorado, Friday has grown exponentially in the Affordable Care Act space through acquisition and organic growth. The company has expanded its employee base to more than 600 people across the country, with operations centers in Alamosa and Pueblo, Colorado.
About Friday Health Plans: Friday Health Plans is purpose-built specifically for people and who buy their own health insurance. The company focuses on overall simplicity to offer affordable health plans with benefits that help members stay healthy and cover them if they get sick or hurt. Operational efficiency, top-notch customer service, and smart technology are core to Friday's consumer-centric approach. All insurance plans and services are offered and administered through licensed subsidiaries of Friday Health Plans, Inc. For more information and to find a health plan, visit www.fridayhealthplans.com.
About Leadenhall Capital Partners:
Leadenhall Capital Partners is a UK-based institutional investment manager focused on making investments in insurance related opportunities, with ca. USD 6bn of assets under management. Established in November 2008, Leadenhall Capital Partners has made over 150 investments in life and health insurance related risks and has supported companies at various stages of their growth cycle. Leadenhall has the expertise to identify promising investment opportunities whilst also backing companies which may provide access to attractive life and health risks for its investment portfolios. Investments are made across the capital structure. For additional information on Leadenhall please visit www.leadenhallcp.com
SOURCE Friday Health Plans