NEW YORK and SANTA CLARA, Calif. — January 4, 2018 —CLARA analytics (“CLARA”), a leading artificial intelligence (AI) and data science company specializing in building easy-to-use AI-based solutions focused on claims operations for the Property & Casualty and Disability insurance industries, today announced a $11.5 million Series A funding round led by Oak HC/FT. CLARA enables the $800 billion global commercial property and casualty market to improve financial performance by decreasing the billions of dollars in claims leakage that occurs annually.
Today, solutions from CLARA empower workers’ compensation claims organizations to improve the medical management of claimants while simultaneously reducing the costs of claims with easy-to-use AI-based solutions, CLARA providers and CLARA claims. CLARA’s advanced analytic solutions incorporate the latest in AI technology to reduce claims leakage and frictional costs for insurance companies and self-insured corporations by:
Detecting (early) potential litigation and optimizing legal representation to improve outcomes and reduce defense expenses.
Connecting claims to the right providers to reduce indemnity costs.
Ensuring optimal treatment protocol is followed to reduce medical costs and lost time for injured workers.
Ensuring appropriate claims resource(s) from the outset are aligned based on claims complexity to improve outcomes.
Enabling the organization to leverage machine learning to scale the best practices of senior adjusters and managers to the broader organization to improve overall performance.
“CLARA is a first mover in utilizing AI to dramatically improve claims outcomes for the P&C industry. Their technology is highly advanced and has already driven strong ROI for its customers by reducing up to 10 percent of claims indemnity and loss adjustment expenses,” says Andrew Robinson, executive in residence at Oak HC/FT. “We look forward to partnering with CLARA in building their business and to continue to develop and mature solutions for other property and casualty lines of business.”
Jayant Lakshmikanthan, founder and CEO of CLARA analytics, adds, “CLARA brings together a combination of the latest in AI technology, extensive insurance industry expertise, and a design thinking approach to rapidly drive meaningful value for our customers. We are excited to welcome Oak HC/FT to the team and look forward to leveraging their extensive insurance and insurtech expertise.”
CLARA’s customers range from market leading and small specialty focused carriers to self-insureds and TPAs. The solutions are currently focused on workers’ compensation but will soon extend to other lines like commercial auto, general and professional liability as well as disability.
Oak HC/FT is the premier venture growth-equity fund investing in Healthcare Information & Services (“HC”) and Financial Services Technology (“FT”). 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. Mr. Robinson will be joining CLARA as chairman, and Matt Streisfeld will join the board of directors.
About CLARA analytics
CLARA analytics empowers workers’ compensation claims teams to rapidly get injured workers back on track with easy-to-use artificial intelligence (AI)-based solutions. Its CLARA providers search engine is an award-winning provider scoring engine that helps rapidly connect injured workers to the right providers, while CLARA claims is an early warning system that helps frontline claims teams efficiently manage claims, reduce escalations and understand the drivers of complexity. CLARA’s customers include a broad spectrum — from the top 25 insurance carriers to small, self-insured organizations. For more information, visit www.claraanalytics.com, and follow CLARA analytics on LinkedIn, Facebook and Twitter.
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.
CLARA providers and CLARA claims are trademarks of CLARA analytics. All other brand names and solution names are trademarks or registered trademarks of their respective companies.
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.