Old Hill Partners provided a $10 million credit facility to HealthGrowth Capital as part of a $16.8 million financing package consisting of both debt and equity.
“Our business has matured significantly since our founding nearly four years ago and we are pleased to have reached these significant funding milestones as we take our company to the next level,” Karl Kipke, CEO of HealthGrowth Capital, said. “This is a critical moment when pharmacy owners need capital and other resources to satisfy patient needs in the face of the COVID-19 global pandemic. We are prepared to help our customers and partners navigate through these challenging times and, together, we will emerge stronger than ever.”
The facility from Old Hill Partners served as the debt portion of the financing. The credit facility has an accordion feature to expand into a larger facility under certain terms and conditions.
“We are excited to offer HealthGrowth Capital this debt financing to fund its future growth,” Peter Faigl, senior portfolio manager of Old Hill Partners, said. “Given its extensive expertise in pharmacy lending and advisory services, we are confident in HealthGrowth’s capacity to support its customers in this time of need,”
The equity tranche of the financing includes a $6.8 million Series B round. Several pharmaceutical and pharmacy industry participants invested in the round.
“This capital positions HealthGrowth as a key lender and advisory services resource for every independent pharmacy in the United States,” Kipke said.
HealthGrowth Capital is a direct lender to community pharmacies.
