Alignment Healthcare Announces $115 Million Equity Investment from Warburg Pincus

Alignment Healthcare (“Alignment”), a population health management company, announced that Warburg Pincus, a global private equity firm focused on growth investing, has agreed to make a $115 million growth investment in the company. The financing will enable Alignment to accelerate expansion of its operations, bringing the power of Alignment’s unique care delivery model to more patients across the country.

Founded in 2013, Alignment Healthcare has created a new model of health care delivery that reduces costs and improves lives by driving patients, providers and payers toward a common goal of wellness. Alignment’s technology and integrated care coordination model improves the quality of care and eliminates waste in the care system through a focus on the highest-cost, most complex patients in Medicare Advantage, Medicaid, and commercial HMO populations. Alignment now serves more than 45,000 members across three states.

“We are proud to welcome Warburg Pincus as our partner and look forward to leveraging their deep expertise and network of relationships in the health care sector. Together with General Atlantic, we believe we have the two best health care financial partners in the world,” said John Kao, president and CEO of Alignment Healthcare. “This partnership will provide Alignment with growth capital to explore new strategic partnerships and acquisitions that will support our continued rapid growth.”

“We see a compelling market opportunity in the shift to coordinated, value-based care in the Medicare Advantage market,” said TJ Carella, managing director, Warburg Pincus. “John and the Alignment leadership team have successfully engineered a technology-enabled model that lowers costs and increases quality, while delivering superior clinical outcomes for patients. We look forward to supporting the company in its continued growth and expansion into new markets.”

General Atlantic partnered with Alignment in mid 2014, staging in capital over the subsequent two years to develop Alignment’s unique clinical and technology platforms, expand the leadership team, scale core operations, and secure foundational partnerships to initiate expansion into new markets.

“We are thrilled with Alignment’s impressive progress to date and continue to be excited about the significant opportunities in front of the company. It is a privilege to work with John and the Alignment team, and we are pleased to welcome Warburg Pincus as a new partner to support Alignment’s continued growth,” said Robbert Vorhoff, managing director at General Atlantic.