Princeton-based Edison Partners said Tuesday it is leading a $5 million investment in Ringmaster Technologies, a market leader in workflow optimization for the health care stop-loss industry.
The investment is Edison’s second with Todd Roberti, founder and chief executive officer of Ringmaster, and represents the fifth health care technology sector investment for Edison Partners in six months.
The funds will help develop Ringmaster’s go-to-market engine for its cloud solutions that modernize the quoting and administration processes for brokers, agencies, third-party administrators, MGUs and carriers of stop-loss policies.
Cleveland-based Ringmaster provides solutions for inefficiencies in the stop-loss insurance industry resulting from outdated systems used to manage the complex quoting and administration processes.
The company offers the first fully automated optimization solution of customizable workflows, quoting and smart contracts, and advanced data and analytics to simplify the administration of stop-loss plans, a critical component of self-funded health plans, now utilized by 60 percent of U.S. employers with premiums doubling to over $19 billion in the last five years.
Ringmaster works with leading adjudication platforms and is building integration feeds to eliminate a substantial amount of human intervention in the existing ecosystem.
“We’re thrilled to again partner with Todd Roberti, an accomplished leader who has demonstrated the intensity and motivation required to win,” said Gregg Michaelson, partner, Edison Partners, who led the investment and joined the Ringmaster board. “We know from the experience of over 230 investments the importance of an accomplished CEO in driving the success of a company looking to scale. With Ringmaster, Todd has again identified a large and untapped market opportunity and is very quickly creating a leadership position and product market fit with differentiated technology.”
Roberti is the founder of Premier Healthcare Exchange (PHX), a prior Edison investment, and Pay-Plus Solutions. The companies were acquired by Parthenon Partners to form Zelis Healthcare. Additionally, Edison invested in Zelis, which merged with RedCard in September 2019 to create the industry’s leading health care payments optimization platform at a valuation of nearly $6 billion, according to Bloomberg. Combined, the companies returned over 40-times to Edison Partners — the largest return in the firm’s 33-year history.
“We saw an opportunity to explore new technology and create automated solutions to drive greater value and growth across the entire health care industry’s business chain. I returned to Edison Partners based on our previous success together and, more specifically, the specialized expertise they provide at the board level and with their operating acumen. I’m excited to partner with the firm and again become a critical component of the complex healthcare ecosystem,” said Roberti.
Edison Partners said that health care IT has been the most active investment area for the company in the last six months, with investments across non-clinical cost optimization, patient engagement, and data and analytics, among key verticals.
New 2019 investments included Capital Rx, Health Recovery Solutions (HRS), PurpleLab, and VirtualHealth. In addition to Zelis, past noteworthy health care IT exits for the firm also include Dendrite, Cadient, Health Market Science, and Verilogue.
Edison Partners said that it has financed and guided more than 230 private companies since 1986.