HealthEdge Receives $17.5 Million Growth Capital
The transaction provides HealthEdge with additional funds to finance its rapid expansion as it supports growing payor demand for the industry’s only end-to-end enterprise product suite
Burlington, Mass. – October 16, 2013 – HealthEdge®, provider of the only integrated financial, administrative and clinical platform for healthcare payors, today announced that Fifth Street Technology Partners, the venture lending group of Fifth Street Management LLC, has worked with Silicon Valley Bank to refinance and provide additional growth capital for the company. The transaction, consisting of a $17.5 million term loan from Fifth Street Finance Corp. (NASDAQ:FSC) and an expanded line of credit with Silicon Valley Bank, will be used to accelerate HealthEdge’s position as the only choice for healthcare payors to radically innovate, drastically reduce costs and efficiently address the business imperatives of today’s healthcare economy.
“This transaction is another significant vote of confidence for HealthEdge, our products and our employees, as a growing number of payors choose our next-generation enterprise platform to meet their rapidly evolving business needs,” said Rob Gillette, CEO of HealthEdge. “As the only true software company with a sole focus on the payor market, we will continue to innovate and ensure our customers can successfully compete in the new healthcare marketplace.”
“HealthEdge presents an exciting new investment opportunity for our firm,” said Michael David, Head of Fifth Street Technology Partners, adding, “The company clearly understands the key pain points plaguing the healthcare payor market, and the HealthRules platform is uniquely capable of addressing these challenges. We aim to partner with inspiring companies that are reshaping their industries, and we view HealthEdge as one of those market leaders.”
HealthEdge continues to dramatically increase its customer base as a growing number of payors select the HealthRules® product suite to increase efficiency, engage their members, provide enhanced transparency, improve the quality of care and outcomes, support new business models and achieve regulatory compliance. The award-winning HealthRules platform is available via the HealthEdge cloud or on-site deployment.
“As one of our premier portfolio companies, HealthEdge embodies our belief that investment in innovation will lead to effective healthcare reform. The HealthRules platform is an example of how technology can make healthcare work,” said Dr. Albert Waxman, Senior Managing Member of the Psilos Group, adding, “As the healthcare industry is being driven to modernize, HealthEdge is playing a significant role by bringing mission-critical technology to the payor market.”
HealthEdge® provides modern, disruptive technology that delivers for the first time, a suite of products that enables healthcare payors to leverage new business models, improve outcomes, drastically reduce administrative costs and connect everyone in the healthcare delivery cycle. Our next-generation enterprise product suite, HealthRules®, is built on modern, patented technology and is delivered to customers via the HealthEdge Cloud or on-site deployment. An award-winning company, HealthEdge empowers payors to capitalize on the innovations, challenges and opportunities that await in the new healthcare economy. For more information, visit http://www.healthedge.com.
About Psilos Group
Psilos Group Managers, LLC (“Psilos”) is a healthcare investment firm focused on providing venture and growth capital to companies operating in the healthcare economy. The firm believes that successful healthcare innovation must reduce cost, improve quality, and align incentives across payers, providers and patients. Founded in 1998, Psilos has $600 million under management and invests across three core healthcare sectors: healthcare services, healthcare information technology and medical technology. Funds managed by Psilos have invested in companies such as ActiveHealth, AngioScore, Definity Health, HealthEdge, Extend Health, Mauna Kea Technologies, and SeeChange Health, among many others, which have played, and continue to play, key roles in the transformation of the U.S. healthcare economy. Psilos has offices in New York, the San Francisco Bay Area, and in Santa Fe, New Mexico. For more information, go to http://www.psilos.com.
About Fifth Street Management LLC
With over $3 billion in assets under management, Fifth Street Management LLC is a leading alternative asset manager and the SEC-registered investment adviser of two publicly-traded business development companies, Fifth Street Finance Corp. (NASDAQ:FSC) and Fifth Street Senior Floating Rate Corp. (NASDAQ:FSFR). With a track record of more than 15 years and offices across the country, Fifth Street’s nationally recognized platform provides custom-tailored financing solutions to small and mid-sized companies, primarily in connection with investments by private equity sponsors. Principally in the form of one-stop financings, first lien, second lien, mezzanine debt and equity co-investments, the Fifth Street platform has the ability to hold loans up to $150 million, commit up to $250 million and structure and syndicate transactions up to $500 million. Fifth Street’s website can be found at fifthstreetfinance.com.