Radiology Partners Receives $700M Investment

Radiology Partners, (RP), the largest radiology practice in the U.S., today announced that Starr Investment Holdings (SIH) has invested approximately $700 million of long-duration capital in the practice to support its continued growth, including future practice and hospital system partnerships, as well as investments in clinically-focused technology and innovation. RP physicians are also expected to participate in this investment round.

SIH, which focuses primarily on market leading technology-enabled healthcare services businesses, will join RP's Board of Directors. Geoff Clark of SIH will join Mohamad Makhzoumi of existing investor New Enterprise Associates (NEA) as the only two institutional investors on RP's 11-member board. The board is led by RP Chairman and CEO Rich Whitney and includes six independent directors, two of whom are physicians, along with two additional non-independent physicians.

"We are excited to welcome SIH as a new financial and strategic partner, and believe this successful fundraising is both a reflection of our team's accomplishments to-date as well as an endorsement of our strategy and enormous long-term potential to add value to the healthcare system," said Rich Whitney. "Thanks to our many talented and passionate physicians and support team members and the commitment of our founding investment partner NEA, RP holds a clear leadership position in our market. I am more excited by the opportunities ahead of us than at any time since our founding six years ago."

"Radiology serves as a critical gateway in guiding appropriate downstream healthcare interventions, and RP is playing a pivotal role in managing the direction, coordination and delivery of proper care," said Geoff Clark, Senior Managing Director of SIH. "RP is developing new models and technology to positively impact patient care and drive value. We share RP's vision of a physician-led business and are excited to become a part of what we consider to be a world-class team, helping to support RP in expanding its leadership position."

"This new investment from a premier institutional partner is a testament to our team's strength and ability to meet the needs and expectations of our patients, referring physicians, clients and the 1,400+ radiologists who choose to be part of our practice," said Dr. Rod Owen, President and Board Chair at Scottsdale Medical Imaging, Co-Executive Vice-President of Southwest Diagnostic Imaging and RP Director. "We are deeply focused on our mission to transform radiology, and this new investment will support our programs to develop great physician leaders and drive innovation to enhance the clinical value our practice delivers, all while maintaining local autonomy for physicians."

RP has experienced significant organic and partner-led expansion. Over the last six months, RP has expanded into Las Vegas, Nevada; Austin, Texas; Greensboro, North Carolina; and Atlanta, Georgia as well as the New Jersey/Pennsylvania market. In addition, RP has added 30 new client sites and has deepened its capabilities in radiology consulting, IT and revenue cycle management services. This latest additional financing follows the previously announced $234 million equity raise in March 2018 and $200 million equity raise in May 2017.

Barclays served as exclusive financial advisor and Goodwin Proctor as legal counsel to RP. TripleTree served as financial advisor and Kirkland & Ellis served as legal counsel to SIH.

About Radiology Partners

Radiology Partners is the largest physician-led and physician-owned radiology practice in the U.S., serving more than 1,000 hospitals and other healthcare facilities across the nation. As a physician-led practice, our mission is to transform radiology by innovating across clinical value, service and economics, while elevating the role of radiology and radiologists in healthcare. Using a proven healthcare services model, Radiology Partners provides consistent, high quality care to patients, while delivering enhanced value to the hospitals, clinics, imaging centers and referring physicians we serve. Learn more at www.radpartners.com.

About Starr Investment Holdings

Starr Investment Holdings, LLC ("SIH") is a multi-billion dollar New York and Nashville-based investment adviser that manages capital on behalf of the Starr Companies together with that of select institutions and family offices. SIH invests in privately-held technology-enabled services businesses with a particular focus on healthcare services. SIH partners with world-class management teams, supporting them with flexible long-term capital and strategic resources. For more information, please visit www.starrholdings.com.

About NEA

New Enterprise Associates, Inc. (NEA) is a global venture capital firm focused on helping entrepreneurs build transformational businesses across multiple stages, sectors and geographies. With more than $20 billion in cumulative committed capital since the firm's first fund closed in 1978, NEA invests in technology and healthcare companies at all stages in a company's lifecycle, from seed stage through IPO. The firm's long track record of successful investing includes more than 225 portfolio company IPOs and more than 375 acquisitions. www.nea.com.