Fifth Street Management announced that its venture lending group, Fifth Street Technology Partners, worked with Silicon Valley Bank to refinance an existing credit facility and provide additional growth capital for HealthEdge Software.
The transaction consisted of a $17.5 million second lien term loan from Fifth Street Finance and a revolver from SVB.
“The timing of this financing reflects the tremendous market opportunity for HealthEdge,” said Rob Gillette, CEO of HealthEdge, adding, “The investment will be used to accelerate our position as the only choice for healthcare payors to radically innovate, drastically reduce costs and efficiently address the business imperatives of the evolving healthcare economy.”
HealthEdge continues to increase its customer base as a growing number of payors select the HealthRules product suite to reduce costs, 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.
“Venture debt represents a natural extension of the Fifth Street platform,” commented Michael David, a 20-year industry veteran who heads Fifth Street Technology Partners. “Many financial sponsors offer both small cap private equity and growth stage venture capital and we want to support multi-segment sponsors’ complete set of needs. This professional investor-driven approach has become one of our most admired traits, and aligns perfectly with SVB, our partner in this deal and an industry-leading bank.”
HealthEdge provides modern, disruptive technology that delivers 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.