Oak HC/FT leads growth round to drive partner, platform and market expansion
CHICAGO, IL (January 4, 2018) - NextCapital, the leader in enterprise digital advice, is pleased to announce the completion of its Series C Preferred Stock financing. Oak HC/FT, the premier venture fund investing in early to growth stage tech-enabled financial services and healthcare companies, led the funding round. Existing NextCapital shareholders Manulife Financial, Transamerica Ventures, Vermont Seed Capital Fund and Route 66 Ventures also participated.
NextCapital provides institutions with an integrated and configurable platform to deliver automated personal financial advice — including holistic portfolio tracking, planning, savings advice, and portfolio management.
“Oak HC/FT shares our conviction that large financial institutions will win the big shift to scalable personal investment advice,” said John Patterson, Chief Executive Officer of NextCapital. “This infusion of new capital, coupled with Oak HC/FT’s fintech pedigree, will accelerate our ability to bring new digital advice capabilities to market and open up new strategic business channels.”
“The $15 trillion U.S. retirement savings market is going through seismic change– from a regulatory, technology, and consumer perspective,” said Patricia Kemp, Co-Founder and General Partner, Oak HC/FT. “Having surveyed the digital advice landscape, NextCapital is uniquely positioned to enable the transformation of the U.S. retirement industry and the way Americans save for retirement.”
NextCapital assists institutional partners to rapidly and cost-effectively bring to market a full-stack digital advice solution that is specifically built to support the demanding configuration requirements.
“Retirement and asset management firms are selecting NextCapital as a technology partner because of its ability to provide a truly differentiated digital advice solution,” added Alois Pirker, research director of Aite Group. “More specifically, large institutions want to utilize their own proprietary investment methodology, have full control of user experience, integrate to multiple 401(k) record keeping systems, and often, support multiple business channels.”
Patricia Kemp has 15 years of experience as a venture capitalist investing in transformative companies and entrepreneurs in financial services and FinTech, will join the NextCapital Board of Directors. Additionally, Oak HC/FT venture partner Dan Petrozzo, will join NextCapital as a Board Observer. Prior to joining Oak HC/FT, Dan was previously Chief Information Officer of Fidelity Investments and Morgan Stanley, as well head of investment management technology for Goldman Sachs.
Oak HC/FT’s FinTech team is excited to welcome our newest Venture Partner, Dan Petrozzo, who will help us expand our track record of investing in fintech companies that are positioned for accelerated growth.
Dan brings two decades of experience in capital markets and asset management, with a specific focus on infrastructure and technology. His experience as an entrepreneur, operator and investor, combined with his institutional knowledge of capital markets, IT and infrastructure, make him a great addition to Oak HC/FT as we deploy our second fund.
“Since launching Oak HC/FT in 2014, we have continued to expand the firm by bringing on industry leaders and executives to join our team,” said Tricia Kemp, Co-founder and General Partner of Oak HC/FT. “Dan is a world-class entrepreneur and executive whose startup and financial services expertise complement our group ideally.”
Dan Petrozzo added, “I am passionate about tackling complex problems in Financial Services, and I now look forward to this opportunity to work with the terrific team at Oak HC/FT. We will deploy our collective skills to address important issues in the multi-trillion-dollar Financial Services market, including by leveraging technology to improve quality, reduce inefficiencies, enhance customer experiences.”
Prior to joining Oak HC/FT, Dan was Senior Vice President at Intralinks where he was responsible for customer success and technology operations. Dan joined Intralinks from Verilume, a cloud computing company he co-founded, which was sold to Intralinks in 2016.
Dan is a former Partner and was Global Head of Technology for investment management at Goldman Sachs. He was Chief Information Officer at Fidelity Investments, and former Co-Chief Information Officer at Morgan Stanley, and Global Head of Equity Prime Services Technology for Deutsche Bank AG.
Dan’s appointment follows other recent additions to the Oak HC/FT team, including Andrew Robinson, who joined as an Oak HC/FT Executive in Residence, as well as Brigitte Tondreau, a newly appointed analyst with the fintech team.
The nation’s largest independent provider of specialty pharmacy services closes deal to acquire pharmacy benefit manager and announces new $800 million senior secured credit facilities.
FLINT, Mich., Dec. 20, 2017 – Diplomat Pharmacy, Inc.(NYSE: DPLO), has completed its acquisition of Leehar Distributors, LLC, doing business as LDI Integrated Pharmacy Services, from Nautic Partners, LLC; Oak HC/FT Partners, L.P.; and LDI management.
Diplomat has also entered into new $800 million senior secured credit facilities.
LDI Integrated Pharmacy Services is a full-service pharmacy benefit manager (PBM). It includes URAC–accredited mail-order and specialty pharmacies, a national network of retail pharmacies, and comprehensive clinical programs. LDI is based in St. Louis, Missouri.
Joel Saban, president of Diplomat, said the acquisition better positions the company to meet growing demand—especially from small and midsize health insurers, third-party administrators, and self-insured organizations—as it evolves from a specialty pharmacy provider to a broader health care company.
“LDI significantly expands Diplomat’s ability to create an affordable drug benefit design and increase access to high-cost therapies,” Saban said. “Combining LDI with Diplomat’s specialty footprint allows us to address unmet market needs—ultimately helping patients get access to the right drugs at the right time.”
Albert Thigpen, chief operating officer of LDI, said the combined company will have the enhanced ability to serve middle-market payors eager for a service model that helps patients with complex therapies while containing costs under the medical and pharmacy benefits.
“Specialty drugs—often new and expensive treatments—represent a majority of medications in the FDA pipeline,” Thigpen said. “In such a fast-growing segment, our clients need intuitive, innovative approaches to manage rising cost and new therapies.”
Under the terms of the agreement, Diplomat purchased LDI for $515 million in cash and approximately $80 million in Diplomat common stock. The cash portion of the acquisition was funded by Diplomat’s new $800 million senior secured credit facilities, the proceeds of which were also used to terminate Diplomat’s outstanding indebtedness.
In conjunction with the acquisition closing, Diplomat fully syndicated an $800 million debt financing led by JPMorgan Chase Bank, N.A. and Capital One, National Association. The $800 million financing is comprised of a $250 millionRevolving Credit Facility, a $150 million Term Loan A Facility, and a $400 million Term Loan B Facility. The proceeds of the debt financing will be used to finance the LDI acquisition, pay related transaction fees and expenses, refinance Diplomat’s current indebtedness, and provide sufficient liquidity for the company’s future needs.
“With the strong reception from our lenders in combination with our newly assigned B1/B+ credit ratings, we are pleased to have closed our new senior credit facilities on terms favorable to what we initially expected,” said Atul Kavthekar, CFO of Diplomat. “We now look forward to demonstrating Diplomat’s commitment to return to our target leverage of 2x to 3x trailing EBITDA by mid-2019.”
Forward-Looking Statements This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give current expectations or forecasts of future events or our future financial or operating performance and may include the Company’s expectations regarding the expected benefits of the acquisition, developments and business strategies. The forward-looking statements contained in this press release are based on management’s good-faith belief and reasonable judgment based on current information. These statements are qualified by important risks and uncertainties, many of which are beyond our control, that could cause our actual results to differ materially from those forecasted or indicated by such forward-looking statements. These risks and uncertainties include: delays or difficulties in integrating the combined businesses; and the ability to achieve cost savings and operating synergies and the timing thereof. The foregoing risks should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein, and in Diplomat’s filings with the Securities and Exchange Commission, including “Risk Factors” in Diplomat’s Annual Report on Form 10-K for the year ended Dec. 31, 2016, and in subsequent reports filed with or furnished to the Securities and Exchange Commission. Except as may be required by any applicable laws, Diplomat assumes no obligation to publicly update such forward-looking statements, which are made as of the date hereof or the earlier date specified herein, whether as a result of new information, future developments or otherwise.
About Diplomat Diplomat (NYSE: DPLO) is the nation’s largest independent provider of specialty pharmacy services—helping patients and providers in all 50 states. The company offers medication management programs for people with complex chronic diseases and delivers unique solutions for manufacturers, hospitals, payors, providers, and more. Diplomat opened its doors in 1975 as a neighborhood pharmacy with one essential tenet: “Take good care of patients and the rest falls into place.” Today, that tradition continues—always focused on improving patient care and clinical adherence. For more information, visit diplomat.is.
Healthcare Private Equity Association recognizes Lamont for her long-standing commitment to and impact on the healthcare industry.
CHICAGO (DECEMBER 19, 2017) – The Healthcare Private Equity Association (HCPEA) has announced it will honor Annie Lamont with its 2017 Russell L. Carson Award for lifetime achievement in healthcare investing. Annie, Co-Founder and Managing Partner of Oak HC/FT, is recognized for her 30+ year career supporting the creation and growth of many of the healthcare industry’s most successful and dynamic companies.
A renowned investor, Annie has applied her integrity, intelligence, and passion to rise to the top of her field while improving the direction of healthcare. She has a strong track-record of identifying, and then working constructively with, healthcare entrepreneurs who share her passion and focus on building leading companies that enhance clinical quality, effectively contain costs, and deliver a high-level customer and consumer experience.
“Few people can match Annie’s tenacity and intellectual hunger in contributing to the $3 trillion healthcare industry,” said Andrew Adams, Co-Founder and General Partner at Oak HC/FT. “This is powerfully demonstrated through her track-record and reputation for building leading companies that span all industry segments – biotech, pharmaceuticals, managed care, behavioral health, service providers, and healthcare IT.”
“Over decades, Annie has been an industry thought leader in building strong and successful healthcare companies – especially ones that materially and positively improve the state of the US healthcare system,” adds Craig Frances MD, President of HCPEA. “Annie has been one of the most strategic and creative investors our industry has ever seen and she is an outstanding role model for our future leaders. We are thrilled to be honoring Annie with this award.”
Annie’s leadership reaches beyond the healthcare industry. She has been active in leadership roles on the Stanford University Board of Trustees, the Executive Board of the National Venture Capital Association, and several charitable and philanthropic activities.
HCPEA created the Russell L. Carson Award to honor an individual who has had a long-standing impact in the healthcare private equity industry. The first recipient was Russ Carson himself in 2011. Past honorees include David Beecken of Beecken Petty O’Keefe & Company, Michael Michelson of KKR, Bryan Cressey of Cressey & Company, Marty Mannion of Summit Partners, Rick Stowe of Health Enterprise Partners, and Eugene Hill of SV Health Investors. Annie will receive the award in January at HCPEA’s Annual Awards Dinner.
The Healthcare Private Equity Association (HCPEA) is a nonprofit trade association whose mission is to sup¬port the reputation, knowledge, and relationships of the healthcare private equity community. HCPEA’s 60+ members are among the best known, most respected, private equity firms. Collectively, HCPEA’s member firms employ over 500 investment professionals throughout the United States and Canada. With over $1 trillion under manage¬ment, our members represent one of the largest portfolios of privately held healthcare-related businesses encompassing services, products, diagnostics, distribution, pharmaceuticals and IT, among other segments. For more information, please visit http://www.hcpea.org.
ABOUT OAK HC/FT
Oak HC/FT (http://oakhcft.com) is a premier venture fund investing in Healthcare Information & Services (“HC”) and Financial Services Technology (“FT”). We are focused on driving transformation in these industries by providing entrepreneurs and companies with strategic counsel, board-level participation, business plan execution, and access to our extensive network of industry leaders.
New funding to drive expansion and launch of new AI-powered conversational products for financial services organizations
New York, NY (December 13, 2017) – Kasisto, creators of KAI, the leading conversational AI platform for finance, today announced a $17 million Series B funding round led by Oak HC/FT with participation from existing investors Propel Venture Partners, Two Sigma Ventures, Commerce Ventures, Mastercard and Partnership Fund for New York City. KAI enables financial institutions to acquire new customers as well as engage, support, and generate additional revenue from existing customers via human-like, intelligent conversations with smart-bots and virtual assistants, anytime, anywhere.
The new capital will be used to scale the business to meet the increasing demand for Kasisto’s products in existing and new markets as well as deepen partnerships with existing customers. This new funding will also be invested in expanding the KAI platform to include new AI-powered features and incorporate innovations that continue to deliver both business results and customer engagement and delight.
“This past year has been one of explosive growth across the board – the number of signed deals and deployed customers, our team’s strength and size, and KAI’s feature robustness and readiness for large-scale enterprise deployments,” says Zor Gorelov, CEO and Co-Founder of Kasisto. “There is great momentum going into this investment, especially following the recent signing of major customers including TD Bank and Standard Chartered Bank. We are very excited to partner with Oak HC/FT on this next phase and consider their track record and expertise in the finance sector a significant asset.”
“AI’s adoption in financial services has continued at a rapid pace. This technology serves as a catalyst of change to enhance the sector’s technology and operations entirely,” adds Patricia Kemp, Co-founder & General Partner at Oak HC/FT. “Kasisto has an amazing track record of not only having one of the most proven and comprehensive AI platforms in the industry, but also with their customers – some of the world’s most innovative financial institutions — that sets them apart. We are excited to partner with Kasisto to continue to drive scale and growth.”
KAI is an enterprise-ready platform that powers bots and virtual assistant with financial expertise, steeped with domain knowledge, so financial institutions can:
Offer entirely new and differentiated experiences to their consumers, designed with the most intuitive user interface: natural human language
Decrease customer care costs by deflecting call center calls and triaging inquiries
Increase lifetime value of customers with contextual and relevant offers for financial products and services
Engage customers and promote brand loyalty with proactive financial well-being features
Meet customers in their preferred channel – mobile, web, messaging or home devices
Oak HC/FT is the premier venture growth-equity fund investing in Healthcare Information & Services (“HC”) and Financial Services Technology (“FT”). Kasisto is the 18th investment by Oak HC/FT since launching the in June 2014. The fund and its investors contain deep domain experience and are uniquely positioned to provide entrepreneurs and companies with strategic counsel, board-level participation, and access to an extensive network of industry leaders. Ms. Kemp will join the board of Kasisto and Michael Heller will join as a Board Observer.
Founded in 2013, Kasisto is on a mission to enable companies to attract, engage, support, and transact with their customers via human-like, intelligent conversations, anytime, anywhere. Kasisto’s conversational AI platform, KAI, powers omni-channel bots and virtual assistants with deep domain expertise across mobile apps, web, messaging platforms, wearables, and IoT devices. With contextual and personalized conversations, they fulfill requests, solve problems, and predict needs as well as help companies support and market their products and services. Built with the deepest AI portfolio in the industry, KAI is an agile platform with self-service tools to customize and continually improve consumer experiences and seamlessly add new features. Marquee customers include DBS Bank, Mastercard, Standard Chartered, TD Bank, and Wells Fargo. As an SRI International spin-off, Kasisto leverages decades of artificial intelligence research and IP to create a full-stack, scalable, enterprise-ready platform. For more information visit www.kasisto.com. Follow Kasisto on Twitter, LinkedIn and Facebook.
ABOUT OAK HC/FT
Oak HC/FT (http://oakhcft.com) is the premier venture fund investing in Healthcare Information & Services (“HC”) and Financial Services Technology (“FT”). We are focused on driving transformation in these industries by providing entrepreneurs and companies with strategic counsel, board-level participation, business plan execution and access to our extensive network of industry leaders. Follow Oak HC/FT on Twitter, LinkedIn and Medium.