New York-based specialty finance company Abacus Finance Group, has announced it was the sole lead arranger for senior debt to support the minority recapitalization of eSolutions — a revenue cycle management software company — by its management and the Boston-based private equity firm WestView Capital Partners. The amount of the transaction wasn’t disclosed.
Abacus Finance Group, LLC (Abacus), a recently formed New York-based specialty finance company, announced today that it served as Administrative Agent and Sole Lead Arranger for senior debt financing to support the minority recapitalization of eSolutions, Inc. (eSolutions) by management and WestView Capital Partners (WestView). The amount of the transaction was not disclosed. In addition to providing the financing, Abacus, which focuses exclusively on providing cash flow financing for private equity-sponsored, lower middle-market companies, made an equity co-investment in eSolutions.
Headquartered in Olathe, KS, eSolutions is a provider of revenue cycle management software-as a-service (“SaaS”). The company’s products assist healthcare providers in automating and enhancing workflow with regard to claims review, editing, and denials/appeals management, as well as eligibility verification and payor connectivity. WestView Capital Partners, a Boston-based private equity firm focused exclusively on lower middle market companies, manages over $500 million in capital. eSolutions was advised by Brentwood Capital Advisors, LLC. Legal counsel to Abacus was provided by Goulston & Storrs, LLP.
“The principals at Abacus financed my first healthcare outsourcing investment over a decade ago, and given that longstanding relationship and the team’s healthcare and software expertise, it was natural to turn to them for this transaction,” said Matt Carroll, WestView General Partner, who led the investment for WestView. “Hands down, we believe that no one executes better on what they promise than Abacus. The approval and closing were rapid and seamless, and, in keeping with what they refer to as their “Total Partnership Approach,” Abacus went the extra step and put their healthcare industry relationships to work by making new business introductions for eSolutions at leading hospitals across the country.”
“It was critically important in this transaction that Abacus had both the healthcare and software industry knowledge to move quickly and that we were able to fund the entire amount required for the recapitalization” said Tim Clifford, President and CEO of Abacus. “Healthcare is an area of strength for us, and the IT sector is among the most exciting and fastest growing in the healthcare industry. eSolutions provides a powerful value proposition to clients through a proprietary, best-in-class software offering and a passionate and committed management team led by Bill Creach, eSolutions’ founder and Chief Executive Officer.”
About WestView Capital Partners
WestView Capital Partners, a Boston-based private equity firm focused exclusively on lower middle market companies, manages over $500 million in capital in two funds. WestView partners with existing management teams to sponsor minority and majority recapitalizations, growth, and consolidation transactions in a wide range of industries ranging from business and technology services, software, healthcare services, industrial/manufacturing to consumer/retail. WestView targets companies with operating profits between $3 million and $20 million with investment sizes ranging from $5 million to $30 million. For more information, please visit www.wvcapital.com.
About eSolutions, Inc.
Headquartered in Olathe, KS, eSolutions is a provider of revenue cycle management software-as a-service (“SaaS”). The company’s products assist healthcare providers in automating and enhancing workflow with regard to claims review, editing, and denials/appeals management, as well as eligibility verification and payor connectivity. eSolutions’ client base is comprised of over 1,100 organizations consisting of more than 3,600 hospitals, home health and hospice providers, skilled nursing facilities, and durable medical equipment providers. For more information, please visit www.ecorpnet.com.
About Abacus Finance Group, LLC
Abacus Finance, formed in June 2011 as an affiliate of New York Private Bank & Trust, is a lower middle-market focused, specialty finance company that provides cash flow-based senior and subordinated debt financing to private equity-sponsored companies nationwide. Abacus targets debt financing opportunities of up to $50 million with a typical hold size ranging from $10 million to $25 million, and the companies it finances generally have EBITDA between $3 million and $15 million. Abacus is headquartered at 6 East 43rd Street, 20th Floor, New York, NY 10017. All inquiries and new investment opportunities should be directed to Tim Clifford at 212-850-4620 or at email@example.com. Please visit www.abacusfinance.com for more information.