Subsequent Events

3 Months Ended

Mar. 31, 2017

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

In connection with the March 2017 Secondary, the underwriters exercised, in full, their option to purchase an additional 1.1 million shares of Class A common stock (the “March 2017 Option to Purchase Additional Shares”) from the Investor Stockholders. The March 2017 Option to Purchase Additional Shares closed on May 1, 2017. The Company did not receive any proceeds from the sale of the shares.

The shares sold in the March 2017 Option to Purchase Additional Shares consisted of 0.5 million existing shares of the Company’s Class A common stock owned and held by the Investor Stockholders. It also included 0.6 million newly-issued shares of the Company’s Class A common stock received by certain Investor Stockholders pursuant to Class B Exchanges for an equal number of the Company’s Class B common stock and an equal number of Class B units. Class B units received by the Company from certain Investor Stockholders were simultaneously exchanged for an equivalent number of Class A units of Evolent Health LLC, and Evolent Health LLC cancelled the Class B units it received in the Class B Exchanges.

As a result of the Class B Exchanges in connection with the March 2017 Option to Purchase Additional Shares described above, the Company’s economic interest in Evolent Health LLC increased from 83.9% as of March 31, 2017, to 84.9% immediately after the closing of the March 2017 Option to Purchase Additional Shares.