Warburg Pincus Invests in Great Hill-Backed Pareto Health 

Growth investor Warburg Pincus has become the latest private equity backer of employee benefits platform ParetoHealth. Great Hill Partners, which bought into the business in 2019, will hold an equal stake in Pareto with Warburg. 

Specific terms of the investment were not disclosed. 

Philadelphia-based ParetoHealth aims to make self-insurance accessible for small and mid-sized employers, reduce volatility and drive down the overall cost of healthcare. 

“Employers are facing rising costs, increased volatility from things like specialty drugs and gene therapies, and claims that now extend for years.  This triple threat combines to make health insurance one of the most vexing challenges for employers. ParetoHealth’s unique platform addresses these challenges and puts the employer back in control,” said T.J. Carella, Managing Director and Head of Healthcare, Warburg Pincus. 

Boston-based private equity firm Great Hill Partners, which was bought into by Blackstone at the end of 2021, raised a $4.65 billion final close for its most recent fundraise last year. The new vehicle dwarfed the $2.5 billion Fund VIl raised in 2019. 

In January, Warburg Pincus raised $15.4 billion for its latest blockbuster buyout campaign, just missing its $16 billion target. It is already the largest in the firm’s history, surpassing the $15.1 billion raised by Private Equity X during the previous buyout boom in 2007. 

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