Benson Capital Partners invests in local health benefits company for hospitality workers
Dec 04, 2024
Since Gayle Benson launched Benson Capital Partners in 2019, the private investment firm has targeted innovative startups that have high-growth opportunities, address industry challenges, and drive meaningful change to improve the local and Gulf South economy.
Benson’s latest investment is in a local company that is working toward solving one of the biggest problems in the hospitality industry: affordable health insurance and wellness benefits for workers.
Benson Capital Partners (BCP) has announced an investment in OS BENEFiTS, a New Orleans-based provider of affordable health insurance and wellness benefits tailored specifically for the U.S. hospitality industry. Additional investors include Resilience VC, Symphonic Capital, The Idea Village’s Momentum Fund, Boot64 Ventures, and the New Orleans Startup Fund. The investment amount was not reported.
Approximately 32% of U.S. hospitality workers have employer-sponsored healthcare coverage, compared to 77% of private industry workers, according to the Bureau of Labor Statistics. There are over 400,000 independent restaurants and 11 million hospitality workers in the U.S.
“At Benson Capital Partners, we are proud to support businesses that are making a meaningful difference in their industries, and OS BENEFiTS is a perfect example of this,” said Benson, chairwoman and owner of Benson Capital Partners, and principal owner of the New Orleans Saints and Pelicans. “The hospitality industry is a backbone of the U.S. economy, yet workers face significant barriers to accessing affordable healthcare. With this investment, we are excited to help OS BENEFiTS expand its impact, providing critical healthcare access and wellness support to the dedicated individuals who power this vital sector.”
OS BENEFiTS is a former participant in The Idea Village VILLAGEx program. In 2021, the company was built by the parent hospitality consulting company Oyster Sunday and was founded by hospitality veteran and New Orleans native Elizabeth Tilton.
Through collective bargaining and membership through the OSB Association, OS BENEFiTS has secured affordable ACA-compliant health insurance and a wide range of more than 25 wellness benefits for small business owners in the hospitality sector to offer to its employees, including telehealth, mental health support, family planning services, and preventive care. In 2023, the company launched a benefits dashboard with an updated user experience, enhanced personalization, and new benefits partnerships, including catastrophic insurance.
“We understand the challenges hospitality business owners face when trying to offer affordable healthcare to their employees,” said Tilton. “Our platform is designed to make that process easier by providing cost-effective insurance options and wellness benefits. With the support of Benson Capital Partners, we can accelerate our growth and further our mission to provide the hospitality industry with affordable, comprehensive benefits.”
In its five years since inception, BCP has raised two funds – venture capital and real estate – to pursue investment opportunities across the Southeast.
BCP’s first, $56 million VC fund is aimed at investing in early-stage companies focused on robotics, consumer apps, biotech, industrial tech, and other high-growth areas. BCP’s first investment was in AxoSim, a New Orleans-based biotechnology company. In July 2024, hampr, an app-based wash and fold laundry service, received a minority capital investment from BCP to expand its footprint. In August 2024, Glass Half Full secured a $6.5 million investment by BCP, and in November 2024, New Orleans-based technology firm Prokeep raised a $25 million Series A funding round, which included investment from BCP, among other partners.
The BCP Real Estate Fund was formed in 2023 with more than $50 million in commitments from 10 different investors. BCP has announced eight real estate investments over the last two years, including three in Louisiana. In November, the new luxury boutique group Hotel Perle on St. Charles Ave. received partial financing from BCP.
This past June, BCP announced two real estate deals in Georgia and Texas. BCP partnered with Pope & Land Real Estate, Noro Management of Atlanta, and The Helis Interests of New Orleans to acquire student housing property near Georgia Tech University. BCP is providing capital for Panhandle at Rayzor Ranch, an apartment development in Dallas-Fort Worth and near the University of North Texas and Texas Women’s University.