The Rawlings Group Announces Growth Investment from New Mountain Capital

Investment supports the acceleration of Rawlings’ strategic roadmap, capability expansion, and product development with a focus on delivering greater value for its clients

NEW YORK & LA GRANGE, KY – April 2, 2024 – The Rawlings Group (“Rawlings” or the “Company”), a leading coverage analytics provider ensuring payment accuracy on behalf of its health plan clients, today announced a strategic investment from affiliates of New Mountain Capital, LLC (“New Mountain”), a leading growth-oriented investment firm with approximately $50 billion in assets under management. New Mountain is partnering with the Rawlings management team to support the next phase of growth for the Company, including investments in artificial intelligence, product development, and expansion into new markets and capabilities.

Rawlings is a leading technology-enabled payment integrity provider that delivers significant savings for its health insurance clients by identifying the correct third parties responsible for paying medical claims across its subrogation, workers’ compensation, coordination of benefits, and drug claim payment integrity offerings. The Company achieves meaningful financial outcomes for its clients through its differentiated subject matter expertise, longstanding commitment to service and quality, and proprietary technology platforms.

Founded by the late George Rawlings in 1977, the Company has been partnering with health insurance clients for more than 45 years to lower the cost of healthcare. Rawlings created the first ever subrogation outsourcing solution and soon after launched coordination of benefits and pharmaceutical claims recovery offerings that form the foundation of the Company’s capabilities today. Today, Rawlings serves more than 30 health insurance companies and delivers more than $1.5 billion in annual savings for its clients.

“George Rawlings built the industry leader in the payment integrity solutions we provide. With the help of our new partners, the company will continue its growth and success on behalf of health insurers,” said Ryan Little, CEO of The Rawlings Group. “With New Mountain Capital, we are equipped with the resources to accelerate our planned investments in technology, talent development, and innovative payment integrity solutions. We could not be more excited about the future and the role we’ll play in enhancing the experience of all stakeholders in the healthcare ecosystem.”

“We have long admired the Rawlings business and the Company’s reputation for outstanding client outcomes,” said Matt Holt, Managing Director and President, Private Equity at New Mountain. “New Mountain’s deep experience in healthcare technology and payer services, as well as its philosophy of building great businesses, will support Rawlings as the Company accelerates its strategic vision through investing in cutting-edge technology and AI capabilities, while building on its strong market reputation and client relationships.”

“Rising healthcare costs and increasing payment complexity create a significant need for firms that can help health insurance companies navigate these market dynamics. Rawlings’ deep subject matter expertise, augmented by its proprietary technology platform, positions the Company as a leading player in the coverage analytics space that delivers hard dollar savings for its clients,” added Brian Murphy, Managing Director at New Mountain. “We are excited to partner with the entire Rawlings organization to support the next phase of growth for the Company.”

Barclays served as financial advisor to Rawlings, and Debevoise & Plimpton LLP and Dentons Bingham Greenebaum LLP served as its legal advisors. AMB Investment Bank served as financial advisor and Ropes & Gray LLP served as legal advisor to New Mountain Capital.