Sixth Street Growth, the growth investing arm of Sixth Street, is closing a $50 million crossover equity investment in MDLIVE. The funding will be used primarily for the ongoing strategic expansion of MDLIVE’s virtual primary care digital health platform. Additionally, it will be used for the launch of supporting products and services.
In a separate transaction, MDLIVE secured $25 million in debt expansion from other investors.
Following five consecutive years of more than 45% visit growth, in the first half of 2020, MDLIVE virtual visits increased by more than 95% and total bookings increased by more than 300%. Through July, MDLIVE completed nearly 1 million patient visits with increases reported across all service lines, including year-over-year growth of more than 500% for behavioral health, more than 350% for dermatology and more than 80% for medical care. MDLIVE is used by more than 2,000 clinicians as of July 31, 2020. MDLIVE’s wait times averaged 7.7 minutes in July, according to the company.
“The pandemic has accelerated the rapid disruptive transformation of virtual healthcare delivery,” Charles Jones, chairman and CEO of MDLIVE, said. “With this $50 million crossover investment and the healthcare leadership of Sixth Street, MDLIVE will be able to fulfill its caring vision of cost containment, convenient, contagion-free healthcare delivery. As the demand for MDLIVE’s offerings has reached all-time highs, we remain focused on the expansion of a single, proven technology platform with the flexibility to integrate with devices and the capacity to leverage AI and ingest vast volumes of data necessary for proactive and preemptive care.”
“Virtual care has been a long-term theme for our team, and in an increasingly competitive sector MDLIVE stands out as a scaled and differentiated enterprise technology platform providing high-quality, convenient and cost-effective care,” Michael McGinn, partner and co-head of Sixth Street Growth, said. “Their offering accrues to the benefit of all healthcare stakeholders, including patients, providers and payers, and we are pleased to be partnering with their team as they continue to grow and successfully meet the increased demand for their services.”
Sixth Street joins an existing roster of healthcare investors in MDLIVE that includes Cigna Ventures, Health Care Service Corporation, Health Velocity Capital, Novo Holdings, Industry Ventures, Sentara Healthcare, Sutter Health, Heritage Group and Bedford Funding.
BofA Securities acted as placement agent for MDLIVE.