Two large institutional investors are joining Datavant's capital structure as minority partners while founding sponsor New Mountain Capital keeps control.
KKR and Neuberger Berman have each made minority investments in Datavant, a healthcare data platform company, joining the company's capital structure alongside its existing majority investor, New Mountain Capital. New Mountain Capital has held a position in Datavant since 2014 and will continue to control the company following the new investment.
KKR, Neuberger Berman, and Datavant did not disclose the size of the investments or the company's current valuation. The arrangement brings two additional large institutional investors into a private healthcare technology company without altering who holds control of it.
Structures of this kind, in which a founder-led or sponsor-backed private company adds new minority capital partners rather than selling a controlling stake or pursuing a public listing, have become increasingly common among growth-stage private companies. They allow existing owners to bring in additional capital and, in many cases, strategic relationships, while avoiding the dilution of control or public market scrutiny that would come with an initial public offering or an outright sale.
For New Mountain Capital, retaining control while adding KKR and Neuberger Berman as minority partners allows the firm to keep steering Datavant's strategy over a more than decade-long holding period while broadening the company's investor base. For KKR and Neuberger Berman, the investments give both firms exposure to the healthcare data infrastructure sector without requiring either to take an operating or control role in the business.
Datavant operates in the market for healthcare data connectivity and exchange, an area that has drawn sustained investor interest as hospital systems, insurers, and other healthcare organizations look for ways to share and analyze patient data securely. The companies have not outlined what, if any, board or governance rights come attached to the minority stakes.