Houlihan Lokey Advises Avadyne Health

Houlihan Lokey is pleased to announce that Avadyne Health (Avadyne), a portfolio company of WindRose Health Investors (WindRose), has been acquired by Meduit Group (Meduit), a portfolio company of NexPhase Capital (NexPhase). The transaction closed on March 29, 2021.

Founded in 1971, Avadyne offers revenue cycle services, cutting-edge technologies, a national presence, trained and caring staff, and over 49 years of expertise in patient payment and financial engagement to multi-hospital networks and the largest health systems in the U.S. Their proprietary technology and self-service, concierge-assisted collection services have allowed them to successfully scale early-out self-pay and bad debt collection solutions and empower the patient financial experience. They manage over $3 billion in placements, serve more than 5 million patients, and collect over $1 billion in patient payments annually.

Founded in 2000, WindRose Health Investors makes equity investments in companies that operate within the services sectors of the healthcare industry. WindRose focuses on companies with profitable business models and a demonstrated ability to deliver cost-effective solutions. WindRose manages over $1.2 billion in investments and is currently investing out of its fifth fund. The firm is based in New York City and invests in companies throughout the U.S.

Meduit was founded in 2017 through NexPhase Capital’s acquisition and merger of Med A/Rx and RMP, two leading providers of patient-focused revenue cycle management solutions for hospitals and healthcare providers. Meduit focuses on providing patient collection services through early-out services for current patient receivables, bad debt services for past due patient receivables, and insurance services. Meduit is headquartered in Charlotte, North Carolina, and currently serves over 850 hospitals and 65,000 physicians in 46 states, Washington, D.C., and the U.S. Virgin Islands.

NexPhase Capital, formed in 2016 by former principals of Moelis Capital Partners, is a New York-based private equity firm that targets equity investments in leading middle-market, growth-oriented companies. Since inception, NexPhase has managed approximately $1.8 billion of private equity capital. The members of the NexPhase team have extensive healthcare investing experience and a history of working closely with management teams and boards to drive value creation. To date, NexPhase has been an investor in 10 healthcare services companies.

This transaction represents Houlihan Lokey’s continued leadership and momentum in the healthcare technology and tech-enabled services sector, having advised on 40 transactions since 2015. Houlihan Lokey’s Healthcare Technology team continues to be the advisor of choice in the RCM sector, having advised on 20 deals in the broader RCM market in the last five years. Houlihan Lokey’s Healthcare Group is among the largest dedicated healthcare investment banking groups in the country. In 2020, the group closed 22 transactions and was ranked the No. 1 advisor for U.S. healthcare M&A transactions under $1 billion by Refinitiv (formerly Thomson Reuters). Houlihan Lokey’s Healthcare Group has closed more than 300 M&A healthcare transactions since inception.

Houlihan Lokey served as the exclusive financial advisor to Avadyne and assisted in initiating, structuring, and negotiating the transaction on its behalf.