JustKapital Limited has agreed to acquire 100% of leading US personal injury financier, National Health Finance HoldCo, LLC (NHF). NHF boasts established financial returns, robust economics and a large receivables facility to fund growth. This provides an exceptional opportunity for JustKapital to diversify and scale into offshore jurisdictions that directly align with the Company’s funding mechanisms and return profile.
NHF is the third largest provider of financing solutions for personal injury victims throughout the United States (US), with a significant network of medical practitioners and legal firms. NHF is currently active in 19 states, with scope for material market expansion through further penetration of existing states and expansion into new regions.
NHF acquires a lien over the medical treatment invoices associated with personal injury cases (largely resulting from motor vehicle accidents) from medical providers and hospitals, and realises a return on these invoices upon case settlement. NHF’s service provides access to healthcare for the injured party, liquidity to medical providers and a reduced administrative burden to the case lawyers.
NHF has experienced many years of consecutive growth, with a net receivables book value at 31 December 2017 of approximately US$93.7m1. This provides significant potential for expansion with their market share estimated at circa less than 1%2 of the total US motor vehicle accident personal injury claims market.
1Net Receivables is calculated as total gross invoiced amount (or Gross Receivables) less a provision for discounts or doubtful debts. Net Receivables value as at 31 December 2017.
2National Highway Traffic Safety Administration (2016), Insurance Information Institute (2016), JustKapital Management estimates