New York, NY—August 20, 2019—AUA Private Equity Partners, LLC (“AUA Private Equity” or “AUA”) is proud to announce that it has purchased and retired $6.8 million in medical debt for approximately 5,000 U.S. families across the states of New York, Florida, Illinois, and New Jersey. AUA Private Equity worked with RIP Medical Debt, a New York-based charity, to erase the medical debt for families in the communities in which AUA’s portfolio companies operate.
As part of its targeted strategy, AUA understands the opportunities and challenges of operating in a nation with a large and growing minority population, where Hispanics and Black-Americans today represent 40% of the population and are expected to become the majority by 2045. While the ACA (Affordable Care Act) increased coverage for many minorities, they are still underinsured while also being disproportionately affected by chronic illnesses like diabetes, heart disease, and obesity, among others. AUA’s contribution is making a difference in populations most affected by the greater healthcare inequalities we face in America today, particularly across states where minorities represent over 40% of the total population, with Hispanics leading the way.
Andy Unanue, Managing Partner of AUA Private Equity, commented: “The U.S. ranks amongst the top 10 industrialized nations reporting the costliest healthcare per capita and the highest healthcare inequalities. The U.S. healthcare system needs to be reformed so that Latinos, Black, and other Minorities have access to affordable and comprehensive healthcare”. “This contribution is a reflection of our ESG policies, which we believe is not only a core responsibility but an alpha creator. When we positively impact the communities that we work within, we will in turn, receive enhanced returns. We are proud that we have made an impact on the lives of thousands of families, including women, Latinos, and minorities in need.”, Andy added.
Led by two former collection industry executives, RIP Medical Debt, is a nonprofit that qualifies and helps groups of individuals and families with the help of individuals and firms like AUA, by buying large portfolios of debt from medical providers and debt sellers on the debt market and forgiving it. The debt is removed from credit reports and can no longer be collected on.
David Benyaminy, Partner of AUA Private Equity, commented: “At AUA Private Equity, everyone on our team is responsible for ensuring that ESG initiatives are integrated into the culture of the firm and our portfolio companies. When we learned about the facts on Medical Debt, we decided we had to do something, particularly in the states where AUA portfolio companies are located. This donation is about helping those who are less fortunate and supporting the communities in which we operate.”
The names and details of the accounts benefited by AUA Private Equity’s portfolio companies are still private, but all the consumers are notified that their accounts have been acquired and the debts are forgiven due to the generous support of AUA and its portfolio companies. AUA Private Equity plans to continue this charitable program, encouraged by the positive feedback from this initiative.
Medical Debt Statistics
* 43 million Americans now owe about $75 billion in past-due medical debt
* More than 1 in 3 Americans struggle to afford the cost of their medical care
* Medical debt contributes to more than 60 percent of all bankruptcies in the USA
* Medical debt lingers on a person’s credit report and negatively impacts their ability to purchase or rent a home, buy a vehicle, secure a loan, or even gain employment
About AUA Private Equity Partners, LLC
AUA Private Equity Partners is a New York-based, operationally-focused, lower middle-market investment firm providing strategic capital to companies in the consumer products and services sectors with a particular focus on family-owned businesses or companies benefiting from the growth of the U.S. Hispanic population. AUA Private Equity makes equity investments of $20 to $75 million in companies that generate in excess of $5 million in EBITDA. For more information on AUA Private Equity Partners, please visit www.auaequity.com
About RIP Medical Debt
RIP Medical Debt is a nonprofit organization that allows generous donors and organizations to erase the debt of Americans whose lives have been destroyed by unjust medical debt. Founded in 2014 by two former collections industry executive, Craig Antico & Jerry Ashton, RIP Medical Debt rose to national prominence on an episode of Last Week Tonight with John Oliver that has been viewed almost 10 million times, where RIP facilitated the erasure of $15M in medical debt. To learn more, and get involved, visit www.ripmedicaldebt.org