NewsJune 12, 2012
Norwest Equity Partners Announces Significant Investment in GoHealth
Web-Based Technology Solutions Provider for the Health Insurance Industry Poised for Continued Growth
Minneapolis, Minnesota – Norwest Equity Partners (“NEP”), a leading middle market investment firm, announced today that it has made a $50 million equity investment in GoHealth, a Chicago-based technology company. The minority investment in the Company, which was a partnered agreement between GoHealth and NEP management, closed on June 7, 2012.
GoHealth and its consumer-facing website, GoHealthInsurance.com was founded in 2001 as Norvax, Inc. by CEO Clint Jones and President Brandon Cruz. Jones and Cruz initially launched the health insurance industry’s first multi-carrier quote engine which is now used by thousands of agents and brokers across the United States.
Throughout the next decade, Norvax transitioned into GoHealth, establishing itself as an influential leader in the health insurance industry and as one of the fastest growing technology companies in the United States. Today, the company works with over 100 health insurance carriers and more than 10,000 licensed agents use the GoHealth platform.
“On behalf of the NEP partnership, we are excited about our investment in GoHealth and our partnership with Clint and Brandon. Together they have built GoHealth from the ground up, delivered leading-edge products and web marketing tools, and broadened customer initiatives. They are well-poised for continued growth and success,” said Tom Schauerman, a Partner at NEP and GoHealth board member.
GoHealth has developed a robust service with its technology that is revolutionizing the end-to-end process of purchasing health insurance. Through GoHealthInsurance.com, consumers can shop, compare and purchase health coverage on the Web or through a licensed agent. Users utilize GoHealth’s custom quote engine to view benefits and rates side-by-side and filter plan preferences such as preferred company, coverage type and cost levels including premium, deductible and copayments.
“Our company is in a very unique position to have a major impact on the health insurance industry, and our partnership with NEP will allow us to accelerate our strategy to significantly improve the way individuals and families get their health insurance,” said Brandon Cruz, President of GoHealth.
Clint Jones, CEO of GoHealth, added, “From the very beginning, we knew the opportunity we had in front of us. Now with NEP as our new investment partner, we have the resources and experience behind us to drive tremendous momentum for our cutting-edge health insurance technology and business process solutions.”
GoHealth, which is headquartered in River North, Chicago, Illinois, has 165 full-time employees and was named one of Chicago Tribune’s top 100 workplaces for 2011. GoHealth was also among the top 20 fastest growing companies in 2007 and 2008 for Inc. Magazine.
“I am thrilled with NEP’s opportunity to partner with GoHealth,” said Jim Lindner, an Operating Partner at NEP. “With a proven management team led by Clint and Brandon, a terrific business model and best-in-class technology products and solutions, we’re expecting a very successful and bright future for GoHealth.” Lindner joined NEP in 2007 as an Operating Partner to help evaluate and execute software technology investment opportunities. With over 40 years of experience in this specific industry sector, Lindner will work closely with the GoHealth team in addition to his other portfolio duties of providing strategic planning and business growth initiatives, as well as corporate governance.
More information can be found at www.gohealthinsurance.com.
Norwest Equity Partners (NEP) is a leading middle market investment focused on partnering with business owners and building companies into industry leaders. With a reputation for quality investments and exceptional financial returns since 1961, NEP manages nearly $5 billion of capital through a series of equity and mezzanine funds. Offering creative and flexible transaction solutions through management buyouts, recapitalizations and growth financings, NEP seeks $30-$150 million equity investment opportunities for growing and profitable companies within the agriculture, applied technology, business services, consumer products and services, distribution, healthcare and industrial industry sectors. NEP is headquartered in Minneapolis, Minnesota; please visit nep.com for more information.