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Falcon Capital Partners Advises ProgenyHealth in its Significant Growth Investment from Sunstone Partners

WAYNE, PENNSYLVANIA – February 1, 2018: Falcon Capital Partners, a leading middle-market investment bank, announced today that ProgenyHealth (Progeny) has received a significant growth capital investment from Sunstone Partners (Sunstone), a private equity firm that invests in technology enabled services and software companies.

ProgenyHealth, headquartered in Plymouth Meeting, PA, provides utilization management and care management services to health plans for their high risk populations of premature and medically complex newborns. Led by neonatologists, pediatricians, and neonatal intensive care unit (NICU) nurses, Progeny improves the health outcomes of these babies and delivers a positive return on investment to the health plans through provider collaboration and parental engagement. It is the only national company focused exclusively on NICU utilization and case management. Ellie Stang, MD, Progeny’s President and Chief Executive Officer, said that this is the first time that her company has received an outside investment since she founded the Company in 2003. “Our management team has been evaluating various ways to accelerate our growth and decided the time was right to bring on a growth partner. Neonatal care management is a strong growth segment and one which requires a level of clinical expertise not typically found within payers. We offer comprehensive solutions that have very low upfront costs and have been able to achieve significant improvements in health outcomes. Our leadership team wanted to capitalize on the growth opportunity before us, and we decided that the best solution was to partner with a healthcare-focused firm that has significant experience with high-growth, tech-enabled healthcare services companies.”

Sunstone is a leading growth equity firm based in San Mateo, CA. Founded in 2015, the team previously worked together at Trident Capital, a multi-stage investment firm with seven funds and $1.9 billion under management since 1993. Sunstone is now focused on growth equity investments and majority buyouts in technology businesses in North America. Progeny represents their fourth investment out of its $310 million fund Sunstone Partners I, LP. Arneek Multani, Managing Director of Sunstone Partners, said, “ProgenyHealth fits the profile of companies we invest in well: it is a category leader with a demonstrable value proposition driven by a unique technology. The market for utilization and case management services for this population continues to grow each year, due to the national opioid epidemic, advances in fertility technology and more women having babies later in life. We believe Progeny is the leader in this important and growing market, and we look forward to helping the company build on its current service offering and add complementary capabilities over time. We are thrilled to have the opportunity to partner with Ellie and her team in the company’s next phase of growth.”

Falcon Capital Partners served as exclusive strategic advisor to ProgenyHealth. Ellie Stang writes, “Our relationship with Falcon began several years prior to this transaction, as Ted Stack and his team provided strategic advisory during important periods of our growth and maturation as a company. The Falcon team was a true partner throughout the process, playing a significant role in the success of the transaction with Sunstone.”

The terms of the transaction were not disclosed. The full press release can be found here.

The Falcon deal team was led by Managing Director Ted Stack, Vice President Rob Jennings, and Senior Associate Conrad Olenik.