ParcelShield offers predictive parcel surveillance technology, driven by machine learning algorithms, to protect critical package deliveries primarily for specialty pharmacies, mail order pharmacies, and specialty pharmaceutical distributors in the United States.  The Company’s primary service offerings include (i) predicting potential route disruptions and package distress using predictive analytics, (ii) monitoring shipments in real time through a customer-facing surveillance portal, (iii) intercepting distressed shipments and coordinating successful delivery, and (vi) proactively engaging consumers to manage on-time deliveries.  The Company’s services are enabled by a proprietary data model and analytics platform based on more than 17 years of shipping data that allows ParcelShield to protect high-cost, temperature-sensitive, and life-sustaining pharmaceuticals on behalf of its clients.

Top Down Investment Thesis

Excellere’s investment in ParcelShield is based upon the convergence of several long-term themes in the pharmaceutical supply chain and broader healthcare industries, including (i) expansion of the overall specialty pharmacy pipeline increasing the supply of high-price, patient-specific medications in the marketplace, (ii) growing demand for home delivery of medications and heightened consumer expectations for timely and reliable delivery, and (iii) new and evolving regulatory requirements, such as URAC 4.0, that demand greater visibility of product in the pharmaceutical supply chain.  ParcelShield’s innovative predictive parcel technology platform solves these complex issues and generates a highly compelling financial ROI for its customers of greater than 25x, alongside tangible benefits to patient satisfaction and retention rates.

The parcel shipping market is experiencing substantial growth as the surge in e-commerce is driving increasing consumer expectations for express delivery direct to homes.  Global package shipping volume rose 48% from 2014 to 2016 and is expected to continue to rise more than 20% annually through 2021.  E-commerce has been the biggest contributor to shipping volume trends with consumers spending $517 billion online in 2018 in the US alone, which was up from 15% in 2017.  Healthcare-specific online spending has continued to grow as well with the percentage of online and mail-order drug spend projected to increase from 25% in 2017 to 36% in 2022.  A large portion of this growth will be through online and mail-order pharmacies, which are expected to grow at 10% annually through 2022.  Rising consumer expectations of convenience coupled with increased pricing pressure will drive a greater percentage of prescription drug spending online in the years to come.

Buy and Build

The market for predictive parcel surveillance and engagement services has substantial tailwinds due to declining profitability margins for specialty and mail order pharmacies driving a need for cost mitigation measures, pharmacies’ need to improve the consumer’s overall experience, and tightening regulations in drug distribution channels.  ParcelShield is well positioned to capitalize on these opportunities as a result of its proprietary parcel surveillance technology platform that is unmatched by anything currently in the market.  To the extent you are interested in learning more about ParcelShield, please contact Brad Cornell at , Mike Vieth at , or Chris Flight at .

Concord Technologies is a leading SaaS provider of cloud-based document transfer and workflow solutions to more than 1,500 healthcare organizations and companies in other document-intensive industries in which data security and privacy are paramount.  Within the healthcare ecosystem, Concord’s solutions promote data interoperability through the efficient and secure exchange of critical, time-sensitive and private documents between independent organizations, including medical records, prior authorizations and explanations of benefits, among many others.  In addition, Concord’s AI-powered workflow solutions allow organizations to receive, ingest and direct large amounts of inbound unstructured data, while enabling greater efficiency through tools that allow for document recognition, searchability, extraction, archiving and automation.

Top Down Investment Thesis

Concord’s solutions address the pervasive challenge faced by constituents across the healthcare ecosystem in managing the vast amounts of critical data in paper-based, unstructured formats that cannot be easily transmitted, processed or accessed to support patient care.  According to LEK, approximately 64 billion pages of healthcare data was transmitted in 2018, including medical records, patient referrals, diagnostic test results, and prior authorizations, among many others.  Of all healthcare document transfers, approximately 80% were transmitted via fax due to fax’s unique ability to connect all healthcare constituents via a common medium in a HIPAA compliant manner.  As a result, the U.S. market for cloud fax services is estimated to be $750 million and is expected to grow approximately 13% per year as utilization of healthcare services continues to grow and practices replace legacy paper-based fax architecture with SaaS-based cloud fax solutions.

Despite its advantages and ubiquity in healthcare, fax documents contain only unstructured data which lacks a common format or metadata that would allow for easy automation, data capture, and integration into enterprise technology systems, such as EMR platforms.  In fact, Optum estimates that 80% of the health data it receives is in an unstructured format, which must undergo manual review, data abstraction, and management by staff members in order to be converted into a usable, structured data format.  This takes clinical staff away from patient care, increases the incidence of human-introduced errors, and increases the overall cost of healthcare through inefficient and expensive manual handling.  Concord’s NEXTSTEP solution, through its machine learning and native language processing engines, alleviates many common challenges in its ability to automate the recognition, extraction, structuring and integration of data into external systems or route the information to appropriate recipients based on documents received via fax, scanned paper documents and PDF.  Through these automated functions, NEXTSTEP creates significant cost savings, reduces error rates, and makes available vast amounts of previously inaccessible data contained in unstructured form.

Buy and Build

The market for secure document transfer, capture, and workflow automation within healthcare has substantial tailwinds due to the continued push to reduce cost, increase interoperability, and improve patient care.  Concord’s platform is well positioned to continue its organic growth trajectory due to its market-leading cloud fax platform, further enhanced by its proprietary workflow automation and data capture solutions.  To the extent you are interested in learning more about Concord, please contact Ryan Glaws at or Mike Vieth at .

Founded in 1980 and based in Hamilton, NJ, Medlogix is a premier provider of medical claims management solutions to leading auto insurance carriers, administrators for workers’ compensation and group health insurers. Leveraging its proprietary technology platform and deep clinical expertise, Medlogix offers a full suite of medical claims management services including pre-certification, independent medical exams, medical director review, medical bill and code review, and bill negotiation support as well as operates a proprietary PPO network in the northeastern United States.

Top Down Investment Thesis

Excellere’s investment in Medlogix is a result of the firm’s disciplined top down investment strategy, driven by several factors including i) rising medical costs driving an increase in auto and workers’ compensation claim severity, ii) persistence of improper billing and fraudulent claims within the auto and workers’ compensation industries, iii) carrier’s enhanced focus on effective loss prevention and cost containment solutions, and iv) growing utilization of outsourced service providers that improve efficiency and offer a quantifiable ROI.

According to the Insurance Research Council and National Insurance Crime Bureau, annual costs related to improper billing or fraudulent claims in the auto insurance and workers’ compensation industries are estimated to total up to $7.7 and $7.2 billion, respectively.  Despite a decline in claim frequency, since 2005 rising medical costs have driven an increase in claim severity (per claim cost) of 35.5% for bodily injury liability claims and 40.7% for workers’ compensation claims. Persistent claim fraud, rising medical costs and growth in claim severity are propelling the need for greater, more robust claims management and cost control measures among insurers and corporations; outsourced providers of medical claims management services offer an essential, highly effective loss containment solution. Medlogix’s medical claims management solutions and proprietary PPO network help carriers i) identify areas for cost savings tied to improper billing and limit leakage due to payment of fraudulent claims, ii) reduce administrative expenses associated with claims adjudication, and iii) lower medical treatment costs. Combined, the Company’s services deliver a more efficient and disciplined claims process, resulting in greater productivity and reduced severity for its customers.

Buy and Build Strategy

Medical claims management is a highly fragmented industry, which combined with continued trends in the outsourcing of non-core service functions by carriers, creates an attractive sector to employ a buy-and-build strategy. It is estimated that there are currently more than 500 outsourced medical claim service providers in the United States, the vast majority of which are regionally focused and family owned. Medlogix is focused on partnering with organizations known for service quality and excellence in complementary business lines and operating in favorable geographies.

To the extent you are interested in learning more about Medlogix, please contact Matt Hicks at , Ross Gundry at , or Nick Coleman at to discuss the medical claims management services sector further.

Founded in 2003 and headquartered in Powell, Ohio, Two Labs Marketing provides innovative solutions for pharmaceutical manufacturers’ most prevalent and complex commercialization challenges. The Company leverages its experience from more than 125 discrete product launches to design and implement proven commercial strategies that are customized to each product’s therapeutic class, distribution channel and patient access needs. Two Labs’ comprehensive portfolio of commercialization services incorporates best-in-class product launch, compendia strategy, trade management, state licensing, e-prescribing, and lifecycle management services. Through strategic partnerships with Two Labs, pharmaceutical clients are able to provide patients with access to critical therapies while optimizing the commercial potential of their brands.

Top Down Investment Thesis

According to the Centers for Medicare & Medicaid Services, pharmaceutical spending in the U.S. is forecasted to nearly double by 2025 to $615 billion annually. Market growth is being driven by a host of favorable demographic trends and the rapid emergence of specialty pharmaceuticals, including biologics and orphan drugs, some of which present promising new clinical options to today’s most significant therapeutic areas. As these revolutionary therapies continue to evolve, so too does the commercial environment and the ways in which pharmaceutical manufacturers must engage with patients, payers, prescribers and regulators to provide access to these treatments. Achieving a product’s full commercial potential requires pharma manufacturers to effectively communicate a product’s clinical value, resolve patient access and support challenges, select appropriate distribution channels and optimize their performance, and cope with ever-evolving regulations. In doing so, manufacturers require strategic partners with substantial expertise in product commercialization, as well as a detailed understanding of the dynamics specific to the product’s therapeutic area and competitive environment. For more than 13 years, Two Labs has been a trusted partner of pharma and biotech companies to manage the most critical details necessary for timely, successful product launches and optimized performance throughout the product lifecycle.

Buy and Build Strategy

Two Labs’ success has been built over many years based on unique service capabilities, exceptional customer service and deep expertise in product commercialization and support services. As a result, Two Labs benefits from exceptional customer loyalty and longstanding partnerships with its client base. Two Labs is a highly compelling platform for acquisitions due to the breadth and diversity of its customer base, and its proven ability to maintain strong customer relationships through a broad service offering that spans the duration of a product’s lifecycle. The Company is pursuing strategic acquisition opportunities in the pharmaceutical market access services industry, including companies with the following capabilities: (i) managed markets strategy and implementation, (ii) healthcare data aggregation and analytics, (iii) trade management, (iv) patient support services, (v) regulatory pathway and compliance consulting, (vi) government affairs / health economics and outcomes research, or (vii) medical science liaison outsourced agents.

To the extent you are interesting in learning more about Two Labs, please contact Brad Cornell at , Eric Mattson at , Mike Vieth at , or Mike Forsyth at .

G2 Integrated Solutions is a provider of asset integrity solutions to midstream and downstream energy companies, offering a suite of services designed to help clients manage risk within their existing transmission and distribution networks, demonstrate regulatory compliance, and extend the useful lives of their infrastructure assets. The Company leverages customers’ internal data and records, its proprietary tools and methodologies, and a deep pool of highly trained professionals to solve complex operating problems for an extensive client base that includes a number of high profile North American pipeline operators and natural gas utilities.

Top Down Investment Thesis

Given the dramatic increase in activity in the domestic energy market, aging midstream and downstream infrastructure, and an increasingly stringent regulatory environment surrounding these assets, Excellere believes that there is an opportunity to establish a vertically integrated integrity management services provider that operates through a national footprint and broad suite of capabilities. Excellere’s investment into G2 Integrated Solutions is driven by a number of dynamics, including (i) the opportunity to deliver G2’s broad suite of advanced technical solutions to a diverse set of clients that are focused upon risk management solutions and regulatory compliance support, and (ii) attractive end market fundamentals, whereby new project build-out is resulting in an expanded installed base for service and an aging infrastructure is positioning high-quality integrity management services providers for future growth.

Increasing global demand, advancements in horizontal drilling and hydraulic fracturing technologies and new discoveries of economically viable basins have contributed to the continued emphasis on unconventional oil and gas production. In order to support this increased activity, energy companies are required to build infrastructure to integrate new producing regions into existing midstream and downstream networks, maintain and support aging infrastructure given increased throughput, and engineer complex solutions such as converting gas pipelines to liquids in order to respond to market conditions. Furthermore, given the increase in energy activity and the number of high profile catastrophic incidents, an increasingly stringent regulatory environment has evolved, which is driving higher compliance standards. As a result, the North American natural gas industry is currently projected to spend an estimated $20.0 billion annually through 2035 to build new infrastructure and maintain existing assets, resulting in substantial future opportunities for integrity management service providers with advanced technical capabilities and broad service offerings.

Buy and Build Strategy

The North American asset integrity market is highly fragmented with numerous independent product and service providers. As such, G2 Integrated Solutions is well-positioned to add complementary capabilities and extend its geographic reach via acquisitions. The fragmentation in this market, coupled with the increased importance of domestically produced oil and natural gas to the North American energy supply, has created an opportunity to build a full-scale integrity management solutions provider to midstream and downstream energy companies. Specific areas of interest within the systems integrity management industry include: (i) complementary high-end infrastructure engineering services, (ii) GIS products and services, (iii) data analytics and management, and (iv) safety services.

To the extent you are interested in learning more about G2 Integrated Solutions or the integrity management industry, please contact David Kessenich at or Brad Cornell at .

Personable Insurance (“Personable” or the “Company”) is an independent agent-driven, specialist non-standard auto insurance provider. Personable has partnerships with multiple insurance carriers and relationships with over 3,000 independent agents in California, Florida, Georgia and Texas. The Company plans to expand its capabilities further via the organic extension of its service offerings and acquisitions of additional non-standard auto assets and businesses in a number of key strategic states.

Top Down Investment Thesis

Excellere’s investment in Personable is a result of the firm’s disciplined top down investment strategy, and is driven by several factors including (i) the non-discretionary, critical nature of insurance products and services, ii) the highly-fragmented nature of the industry and iii) the opportunity to create a highly-compelling value proposition to carriers, distributors, service providers and insured companies and individuals (“insureds”).

The insurance products and services industry can be segmented into carriers, distributors (agencies and brokerages) and service providers. Carriers receive premiums for providing insurance coverage and typically assume the risks covered by the policy. Depending on a primary carrier’s risk preference, the actual risk may be offloaded to reinsurers who assume all or part of the risk associated with a particular policy. Agencies and brokerages serve as the distribution channel for carriers by selling policies to individuals and businesses, and in some instances rendering services such as underwriting, claims management and customer relations on behalf of their carrier partners. Finally, service providers supply both carriers and distributors with outsourced services and expertise in select areas in which a carrier or distributor may not maintain a core competency.

Gross premiums in the U.S. are expected to exceed $1.5 trillion in 2010/11, and with continued economic recovery, each segment of the insurance sector is poised for expansion at varying growth rates.

Buy and Build Strategy

The insurance sector is highly fragmented and comprised of over 3,000 U.S. carriers, 35,000 distributors and 5,000 service providers. This fragmentation, combined with the opportunity to significantly enhance its customers’ experiences and outcomes through the use of technology-driven automated systems, has created an opportunity to execute a customer-centric, buy-and-build strategy. Specific areas of focus within the insurance sector include: Managing general agents (“MGAs”) in non-standard auto or other niche segments, rural and independent agencies, and service providers (specifically TPAs, loss control / underwriting support, subrogation, data providers and software providers).

To learn more about Personable or the insurance products and services industry, please contact Brad Cornell at or Justin Unertl at .

ASI is a trusted advisor to the Federal Government, providing consulting services, productivity tools and training to over 56 clients within the Department of Defense, Homeland Security and Civilian agencies.

Top Down Investment Thesis

The dollar volume of Federal government purchases has grown by 63% over the past six years to approximately $425 billion (~8.5% growth). Meanwhile, the aging demographics of the federal workforce, high turnover among government employees and budgetary pressures have created greater demand for a trusted advisor to assist the Government in improving acquisition, program management and broader IT processes and outcomes.

Buy and Build Strategy

ASI is pursuing acquisition opportunities that will allow it to accelerate its geographic expansion into key markets (Huntsville, AL; San Diego, CA; etc.) as well as add additional differentiated service offerings for its clients within two general categories:Smaller,

  • Niche Service Providers – Government consulting and training companies that enhance and broaden ASI’s current service offering.
  • Divestitures – There is an excellent opportunity to acquire the divisions of larger, diversified companies that are compelled to divest their acquisition support business units to eliminate conflicts of interest.

To learn more about ASI, please contact Patrick O’Keefe at .