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Coventry Stage: Growth Date of Investment: 1997 Web Site : http://www.cvty.com
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Warburg Pincus invested $40 million in Coventry in June 1997 enabling the company's new C.E.O., Allen Wise, to execute a turnaround of the company's HMOs. Coventry's health plans were well positioned but poorly managed and under-capitalized. Wise has successfully turned around the operations of the company and is now focused on building the business through acquisitions of under-performing smaller health plans in contiguous markets and larger health plans in new markets. In April 1998, Coventry completed its merger with The Principal Financial Group's healthcare subsidiary, Principal Healthcare, an HMO operation and an indemnity health insurance company with revenue of approximately $900 million. Since our initial investment in the company, Warburg Pincus has invested an additional $140 million in shares of the company. Today, Coventry has almost 2 million members in 13 markets.
