The Vistria Group, Century Equity Partners and Flores & Associates Announce Strategic Partnership

Transaction positions the company as a leading national platform for tech-enabled benefits solutions

CHICAGO, Sept. 29, 2022 /PRNewswire/ -- The Vistria Group announced an investment in Flores & Associates LLC (Flores or the "company"), a leading provider of benefit technology solutions and administrative services to employers throughout the United States. As part of the transaction, Century Equity Partners and The Vistria Group will each hold equal ownership in the Company and continue to back the current management team, led by Gary Trainor and Jody Oliver. This transaction represents the ninth investment from Vistria Fund IV, a $2.68 billion fund, and the second financial services investment this year, following The Vistria Group's investment in The Mather Group six months ago.

The Charlotte, N.C.-based company is a premier administrator of employer-sponsored reimbursement plans, providing a suite of integrated benefits solutions independent of any insurance carrier. The company combines high-touch service, best-in-class productivity and innovative proprietary technology to deliver complete plan design and compliance support for reimbursement plans, COBRA, FMLA leave management, and direct bill programs. Flores has established itself as a preferred partner to thousands of businesses and continues to grow nationally. The company has successfully completed seven acquisitions since 2021 and continues to maintain strong relationships across regional and national brokers.

"We are excited to work with Jody, Gary, Century and the rest of the Flores team. We have been impressed by the platform's proven history of strong organic growth, driven by their high-quality service and flexible, customizable technology. We look forward to partnering with them for their next phase of growth," says Boris Rapoport, Partner and Co-Head of Financial Services at The Vistria Group.

The rising cost of healthcare, the growing demand from employees for more benefit options, better decision support and ease of use, as well as the responsibility for benefits election increasingly borne by employees, have driven the need for consumer facing platforms that assist in complex account administration processes.

"Flores' client-centric model and broad product offering have led to a remarkably loyal client base and have made Flores a partner of choice for businesses looking to work with leaders in the space. We are proud to partner with such a strong team and reputable brand," says Michael Castleforte, Partner and Co-Head of Financial Services at The Vistria Group.

"We look forward to working with The Vistria Group team while continuing our partnership with Century. Flores has proven its ability to be a best-in-class solution for our clients. We strive to be both the most admired benefits administration provider and the most admired partner and acquiror to downstream players in the space," says Jody Oliver, CEO of Flores & Associates LLC.

Flores has been a successful acquiror in the space, consolidating smaller players into one, seamless, technology platform and providing an increasingly broad suite of products for their clients. The Vistria Group leverages its operational resources to support its portfolio companies, now including Flores, to help them scale and expand opportunities. The Vistria Group's involvement along with continued support from Century Equity Partners will provide Flores with a capital structure from which to grow, both organically and through further M&A in the space.

"Having worked with the Flores team, we are constantly impressed by their strong execution and deep industry relationships. Clients appreciate the high-quality service and seamless claims processing, affording Flores a strong NPS score and historical retention well over 90%. Moreover, Brokers constantly rate Flores among the top of their recommended vendors. We look forward to continuing our relationship with the team and working with The Vistria Group to take the business to the next level," says Chris Lalonde, Partner at Century Equity Partners.

William Blair acted as exclusive financial advisor to Flores & Associates on the transaction. Waller Helms and Piper Sandler & Co. served as financial advisors to The Vistria Group. Winston & Strawn LLP acted as legal counsel to The Vistria Group; Foley and Lardner LLP acted as legal counsel to Flores & Associates and Century Equity Partners.

Flores is a premier administrator of employer-sponsored reimbursement plans including Flexible Spending Accounts (FSAs), Health Savings Accounts (HSAs), Health Reimbursement Accounts (HRAs) and Commuter Benefit Accounts (CBAs) as well as Life Balanced lifestyle reimbursement accounts and Student Loan Repayment Assistance. In addition to these account-based benefit options, Flores also handles COBRA and other direct bill services to meet the compliance needs of employers. In 2022, Flores launched a full suite of compliance solutions including Premium Only Plan (POP) administration, Wrap SPDs, Form 5500 preparation, and an HR Compliance Center. Based in Charlotte, NC, Flores has emerged as a leader in the CDHP market through a service model founded upon innovative technology, dedicated professionals, and an uncompromising commitment to remarkable service experiences. For more information, visit the Flores website and follow them on LinkedIn.

Century Equity Partners focuses primarily on making private equity investments to support the recapitalization and growth of lower middle market companies that provide services, distribution, and solutions to the financial services industry. The firm strives to identify best-in-class management teams and assist them in accelerating the growth of their businesses by leveraging our experience, relationships, and network.

The Vistria Group is building a new kind of private investment firm that seeks to deliver both financial returns and societal impact. It invests in essential industries like healthcare, education and financial services that deliver value for investors as well as communities, employees, and consumers. The Vistria Group works as a true partner with its portfolio companies, drawing on its deep sector knowledge, operational expertise, unique network, diverse team, and impact orientation to achieve transformational growth. With over $8 billion in AUM, The Vistria Group believes it has delivered attractive returns for its investors while achieving positive outcomes for its portfolio companies, and the lives and livelihoods it supports. For more information, please visit www.vistria.com.

SOURCE The Vistria Group