Houlihan Lokey Advises RMP Group

Houlihan Lokey is pleased to announce the acquisition of RMP Group, Inc., a portfolio company of Thompson Street Capital Partners (TSCP), by NexPhase Capital, L.P. The transaction closed on March 2, 2017.

RMP provides patient-focused revenue cycle management (RCM) solutions that address the increasingly complex and growing patient financial responsibility for healthcare expenditures. The company brings a unique combination of services, technology, and compassionate people to deliver higher net recovery rates for their clients. RMP has over 520 dedicated employees serving roughly 200 hospitals and more than 30,000 physicians across the nation. RMP continues to invest in the future, with a goal of significant growth through successful client partnerships. The company’s growth has been driven through a combination of organic tailwinds and a highly successful acquisition engine.

Founded in 2000 and headquartered in St. Louis, TSCP is a private equity firm focused on investing in founder-led middle-market businesses. The firm has acquired more than 100 companies in the business services, healthcare services, and engineered products sectors, and manages over $1.5 billion in equity across four funds. TSCP typically invests in companies based in North America with EBITDA between $1 million and $20 million.

NexPhase Capital, formed by the former principals of Moelis Capital Partners (MCP), the private equity division of Moelis Asset Management, is a New York-based private equity firm targeting equity investments between $25 million and $75 million in leading middle-market, growth-oriented companies. In 2016, the former principals of MCP formed NexPhase to execute, on an independent basis, the same sector-focused strategy of completing control investments in lower-middle-market companies. NexPhase continues to manage the MCP funds and portfolio companies under a sub-advisory agreement. NexPhase specializes in the healthcare, industrial services, software, and consumer sectors. Led by Co-Managing Partners Kurt Larsen and Ted Yun, the firm will continue to manage approximately $872 million of MCP’s legacy private equity capital. In addition to RMP, NexPhase also acquired Med A/Rx, a North Carolina-based provider of RCM services. The transactions closed simultaneously, and a parent company, Meduit, was established. Meduit will leverage the strengths, expertise, and resources of both companies in order to grow market share under one entity.

This transaction highlights Houlihan Lokey's continued expertise within the RCM sector. Houlihan Lokey is among the most active advisors in this segment of the market, having closed six healthcare RCM transactions in the past 12 months.

Houlihan Lokey's Healthcare Group is a recognized leader in M&A advisory and capital-raising services, providing advice to healthcare services, managed care, senior housing, biopharmaceutical, and life sciences companies. With more than 35 investment bankers in Chicago, Dallas, and New York, Houlihan Lokey's Healthcare Group is among the largest dedicated healthcare investment banking groups in the country. In 2016, the group closed 41 transactions and was ranked the No. 1 advisor for all U.S. Healthcare M&A transactions by Thomson Reuters. Houlihan Lokey's Healthcare Group has closed more than 300 M&A healthcare transactions since inception.