Benecon

Investment Thesis

• Large, underserved market with considerable barriers to entry
• Multiple opportunities for value creation, including M&A
• Attractive historical operating performance

Investment Overview

NBPE invested in Benecon through a mid-life transaction alongside TA Associates, a sponsor well-known to NB. Benecon develops and administers self-funded employee health benefits programs, specifically targeting small and medium-sized U.S. employers (<500 employees). U.S. employers typically provide health insurance benefits to full-time employees as a standard benefit. This insurance is expensive and as companies reach scale one option is for employers to self-insure. To limit the risks of self-insurance, the Company operates “consortiums” to aggregate stop loss insurance purchasing power and reduces health benefits volatility for employers. The Company provides a full suite of actuarial, compliance, finance and administrative services to allow SMBs to self-fund their health plans.

Benecon’s unique model allows public and private companies to more efficiently self-fund their employee medical benefit programs by leveraging the purchasing power of a national network and their actuarial expertise. This effectively lowers healthcare costs for thousands of employer groups and hundreds of thousands of members. Healthcare cost reduction is particularly relevant today and TA Associates has had a longtime commitment to supporting efficiency, quality care and cost containment in the U.S. healthcare system.