Genstar Capital L.L.C. now owns Evolution Benefits Inc.
Evolution Benefits, Avon, Conn., runs the Benny Card system and other health account card systems that consumers can use to draw cash from flexing spending accounts, health spending accounts and other personal benefits accounts.
Genstar, San Francisco, is a private equity firm. Some of the other companies in its portfolio are 21st Services L.L.C., Minneapolis, a firm that provides life expectancy information for the life settlement industry, and several insurance brokerages that focus on the Hispanic consumer. The firm also has invested in life science, health care services, software and industrial technology companies.
Larry Park, a Genstar executive, has been on the Evolution Benefits board since 2006.
Robert Patricelli, the chairman and founder of Evolution Benefits, and other senior managers will stay with the company, Patricelli says.
Evolution Benefits hopes to use Genstar capital to make acquisitions as well as to develop new products, Patricelli says.
Earlier Evolution Benefits backers – The Sprout Group, New York; CCP Equity Partners, Hartford; and Pfizer Strategic Investments Group, New York – have sold their stakes to Genstar, Patricelli says.
James Nadauld, a principal at Genstar, says the firm was interested in Evolution Benefits in part because Genstar has been investing in health care services companies and electronic payments companies.
“We believe strongly that Evolution Benefits is poised for continued growth as consumers and employers continue to migrate towards consumer-directed health products enabled by debit cards rather than manual submission of health care claims,” Nadauld says in a statement.