Angelo, Gordon & Co. has acquired ClearBalance Holdings, a company that provides healthcare patients with interest-free loans to pay their healthcare bills. Terms of the acquisition were not released. ClearBalance was founded in 1992 and is based in San Diego.
Angelo, Gordon & Co. (“Angelo Gordon”) announced today that the firm’s Private Equity Group has partnered with management to purchase ClearBalance Holdings. The investment will help expand the company’s ClearBalance® patient-friendly loan program which provides healthcare patients with interest-free loans to pay their healthcare bills in manageable monthly installments.
ClearBalance was founded in 1992 and held by its current ownership group since 2003. The San Diego-based company has funded more than $500 million in patient loans, and services more than 250 healthcare providers nationwide with more than 1.8 million patient accounts. Hospitals and other healthcare providers partner with ClearBalance to offer an interest-free revolving line to all patients regardless of credit score to help them cover out-of-pocket medical costs. The funding from Angelo Gordon will be used to help continue the company’s growth by expanding its current relationships and introducing its services to more healthcare organizations.
Art Peponis, Co-Head of Private Equity at Angelo Gordon, said, “We’re pleased to partner with the management of ClearBalance on this deal. ClearBalance is the leader in its field and receives high praise from both healthcare organizations and patients for its strong level of customer service, the quality of its products and overall patient satisfaction. We’re excited to help the company continue to grow in the healthcare space by leveraging our financial services expertise.”
“This investment from Angelo Gordon is a strong affirmation of the growing importance that ClearBalance’s patient-friendly loan program has within the healthcare industry,” said Mitch Patridge, Chief Executive Officer of ClearBalance. “There is a growing need for loan programs that are easy-to-manage, both from a consumer and healthcare organization perspective. For hospitals and other healthcare providers, our services are seen as a way for them to increase net recovery rates and reduce their cost of collections while, most importantly, improving patient satisfaction.”
Angelo Gordon’s Private Equity Group makes equity investments ranging from $25 million to $125 million. Sector focus includes financial services, consumer/retail, healthcare, and business services.
Madison Capital Funding LLC provided financing for the transaction and Akin Gump Strauss Hauer & Feld LLP acted as legal advisor to Angelo Gordon. Raymond James acted as the financial advisor and Jones Day LLP acted as legal advisor to ClearBalance.
About Angelo, Gordon & Co.
Angelo, Gordon & Co., L.P. is a privately held limited partnership founded in November 1988, and currently manages approximately $25 billion. The Firm’s investment focus centers around three core competencies – credit, real estate, and private equity – and manages capital across five principal areas: (i) private equity, (ii) real estate equity and debt and net lease, (iii) residential and commercial mortgage-backed and asset-backed securities, (iv) distressed debt and leveraged loans, and (v) multi-strategy. Angelo, Gordon has over 260 employees (100 of whom are investment professionals) and is headquartered in New York, with associated offices in Chicago, Los Angeles, Washington D.C., London, Amsterdam, Hong Kong, Seoul, Shanghai, Tokyo, and Sydney. For more information, visit www.angelogordon.com.
ClearBalance is the premier provider of patient loan programs. Since 1992, ClearBalance has helped its healthcare clients streamline the revenue cycle and efficiently resolve patient balances. Equally important, the ClearBalance loan program helps healthcare providers achieve their mission of increasing patient satisfaction. ClearBalance maintains its corporate office in San Diego, Calif., with regional sales offices throughout the United States.