Leadenhall leads equity raise for health insurer Friday, provides $50m debt

Leadenhall Capital Partners LLP, the London headquartered specialist insurance linked securities (ILS) and reinsurance related investments manager, has backed Denver, Colorado based health insurer Friday Health Plans again, leading an equity raise for the company and providing more debt.

Friday Health Plans largely underwrites individual and small group health insurance products. The company has reported 400% membership growth year over year for the last two years.

At this time, Friday has some 330,000 members across seven US states, that are expected to drive an estimated $1.95 billion in gross premium revenue for 2022.

This is now the third time Leadenhall has supported and invested in the expansive health insurance specialist.

Leadenhall Capital Partners LLP had first participated in a $50 million funding round for the health insurance start-up at the end of 2019.

That was followed in 2021 by Leadenhall Capital Partners providing $60 million in debt financing to Friday Health Plans, which was entered into at the same time as an equity raise for the health insurer, taking its newly raised funding last year to $160 million.

Being a high-growth health insurer, Friday Health Plans has raised more capital in 2022.

This time, Friday has raised $70 million of new equity in a round led by Leadenhall Capital Partners.

Also participating in the equity raise were Vestar Capital Partners, Peloton Capital Partners.

On top of this, Leadenhall has also deployed more capital to Friday, with an additional $50 million in debt financing provided alongside the equity investment made.

Friday intends to utilise the newly raised funds primarily to support expansion into new Affordable Care Act marketplaces across the United States.

“More people are finding value in our simple, practical health plans designed for people who don’t get insurance through their employer,” CEO of Friday Health Plans, Sal Gentile commented. “We are built specifically to give them great health benefits and superior service – all at an affordable price. And we’re able to do this because we focus solely on serving this growing consumer segment.”

Tom Spreutels, Managing Partner at Leadenhall added, “Having worked with the management team at Friday for a number of years, we have observed their expertise in bringing affordable health protection to a growing number of people. We are excited about supporting the future growth prospects of the company through this capital round.”

Leadenhall specialises in both P&C and life insurance or reinsurance linked investments, having invested across life, accident and health insurance start-ups before and operating its own life ILS investment fund strategies for third-party investors.

The ILS manager has specific expertise in the life and health insurance and reinsurance sector, helping it to identify promising investment opportunities, while also enabling it to support companies that could help to secure it access to attractive accident & health risks for its life ILS fund portfolios.