Bright Health IPO: Investors, Execs and Their Stakes in Health Insurer – Business Insider – Business Insider

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  • Bright Health is going public at a $13.4 billion valuation. 
  • The health insurance upstart listed its top investors and executives in its S-1 filing.
  • Here’s which investors and execs stand to make the most heading into the initial public offering.
  • See more stories on Insider’s business page.

Fast-growing Bright Health is the latest health insurance upstart to file for an initial public offering, and its exit is poised to deliver massive gains for its biggest investors and top executives.

Bright, a Minneapolis-based company that provides health insurance to individuals, employers, and seniors, on Tuesday said it plans to sell shares in its IPO for $20 to $23 apiece. The company would be valued at $13.4 billion at the midpoint of the range.  

In comparison, rival Oscar Health was valued at about $9.7 billion in its March IPO, though the stock has since tumbled. Clover Health went public earlier this year and is valued at $5.7 billion.

Bright’s business consists of a health-insurance arm and a health-clinic unit called NeueHealth. The company wants to improve healthcare by partnering closely with healthcare providers and equipping them with tools and analytics to better manage patients, according to its S-1 filing.

It hasn’t turned a profit since its founding in 2015.

Even so, Bright’s investors and top execs are likely to score big paydays from the IPO.

Primary care doctor

Bright Health is the latest health insurer to file to go public.
Geber86/Getty Images

In its filing, Bright listed the top shareholders in the company and their stakes. Here’s who stands to make the most:

  • Bright’s biggest outside investor is New Enterprise Associates, a venture capital firm with more than $20 billion under management. The company owns 37.7% of Bright, or about 216.3 million shares of its common stock going into the IPO. At the midpoint of the offering, that stake is worth $4.6 billion. Mohamad Makhzoumi, a general partner at NEA, and Jeffrey Immelt, a venture partner at NEA who was chairman and CEO of General Electric until 2017, sit on Bright’s board.
  • Bessemer Venture Partners is Bright’s second biggest outside investor with 79.9 million, or 13.9% of the insurer’s shares. The venture capital firm’s stake is worth $1.7 billion. Steve Kraus, a partner at Bessemer, serves on Bright’s board.
  • Greenspring Associates, another VC firm, owns 43 million shares, or 7.5% of Bright. That stake is worth $925.4 million.
  • Bright’s president and CEO is Mike Mikan, a UnitedHealth Group veteran who took the helm at Bright in April 2020. He joined the company as president in January 2019. He owns roughly 10.3 million shares of the upstart, a stake that’s valued at $220.7 million at the midpoint of the price range. This calculation doesn’t include options granted in 2021 that vest over time, or options granted in previous years.
  • Robert Sheehy, who cofounded Bright in 2015, owns 21.5 million shares, valued at $461.7 million. Sheehy, another UnitedHealth veteran, was CEO of Bright until April 2020, when he became executive chairman of the board. This calculation excludes Sheehy’s options granted in previous years.
  • Catherine Smith, a former Target executive who has served as Bright’s chief financial and administrative officer since January 2020, owns 1.2 million shares, a stake that’s worth $25.1 million.

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