MDLIVE, one of the largest and fastest-growing telehealth companies in the country, announced the closing of a $50 million crossover equity investment from Sixth Street Growth, the growth investing arm of San Francisco-based global investing firm Sixth Street Capital.
The $50 million investment will primarily be used for strategic expansion of MDLIVE‘s Virtual Primary Care digital health platform, which serves 45 million members with virtual healthcare services in all 50 states. In a separate transaction, MDLIVE secured $25 million in debt expansion from other investors.
Is an IPO in the South Florida health-tech company’s future? MDLIVE Chairman and CEO Charles Jones told STAT News last month that the company is aiming to go public early next year. Crossover investors such as Sixth Street hold investments in both private and public companies and crossover investments are sometimes made before an IPO. Sixth Street, with $47 billion in assets under management, has invested in companies including tech giants Airbnb and Spotify.
Like other telehealth companies, Miramar-based MDLIVE has experienced significant, accelerated growth during the COVID-19 pandemic. In the first half of 2020, virtual visits increased more than 95% and total bookings increased by more than 300%; that followed five consecutive years of 45% visit growth, the company said.
“The pandemic has accelerated the rapid disruptive transformation of virtual healthcare delivery,” Jones said, in a statement. “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.”