Fortune

FOCUS
that they reduced medical costs were inconclusive,
and today many consist of little more
than perks such as on-site weight-loss clinics
and rebates at local gyms. Still, according to
the Society for Human Resource Management,
59% of employers ofer some form of
wellness program, and 24% ramped up their
oferings in 2017.
Instead of dwelling on cost reduction, Exos
emphasizes the value of getting the most out
of employees when they’re at work, while
framing its services—from fitness coaching
to preparing meals at company cafeterias—as
perks that help retain staf. The company now
serves 25Fortune 100 companies and a range
of hedge funds and venture capital firms,
among many others. Health insurer Humana,
a client since 2015 for which Exos manages
10 fitness centers, says the partnership has
decreased absenteeism and become part of its
strategy to keep top employees in the fold.
Revenues at the privately held Exos are
on track to hit $200 million this year, the
company says, after registering percentage
growth in the mid-teens in recent years. That
trajectory has attracted A-list dealmakers: In
March, Madrone Capital Partners, the investing
vehicle of members of Walmart’s founding
PAIN RELIEVER
An Exos client
gets an evaluation
with 3D
Movement
Quotient (3DMQ),
a diagnostic system
designed to
help reduce workrelated
injuries.
family, and BDT—the firm run by Byron Trott,
Warren Bufett’s investment banker—together
took a majority stake. (The firms declined to
specify the dollar value of the investment.)
Exos, based in Phoenix, was founded by
Verstegen in 1999 as a company focusing on
pro athletes. Early clients included soccer
star Mia Hamm and NFL all-pro J.J. Watt;
the company went on to serve elite military
personnel, including Navy SEALs.
By 2010, Exos had begun pivoting toward
the corporate world, guessing that top execs
would see a greater need for its services. “The
key is to create a culture of health, and you
really need corporate leadership to support
that,” says Harry Liu, a researcher at think
tank Rand who studies workplace health programs.
To contribute to such a culture, it turns
out, Exos had to acknowledge just how few
people truly do hard-core exercise. The typical
wellness program might attract 10% of a
company’s workforce, Exos says, but it can get
participation up to around 40% by focusing
on lifestyle choices, nutrition, and ergonomic
movement rather than boot-camp intensity.
“What we’re riding is the dissatisfaction
with reactive health care,” says Verstegen. And
of course, “we’re riding the war for talent.”
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FORTUNE.COM // JULY.1.18