HCAP Partners invests in TCS Healthcare

HCAP Partners said Nov. 6 that it invested in TCS Healthcare Technologies. Financial terms weren’t announced. TCS Healthcare, of Auburn, California, develops population health and managed care software.

HCAP Partners Announces New Investment in TCS Healthcare Technologies

SAN DIEGO, CA (November 6, 2019) – HCAP Partners, a California-based private equity firm and recognized impact investor, announced today its investment in TCS Healthcare Technologies, a leading developer of population health and managed care software. Terms of the investment were not disclosed. Principal Hope Mago led the HCAP Partners’ investment and joined the company’s board of directors.
TCS Healthcare Technologies was founded in 1983 and is based in Auburn, California. The company’s ACUITY suite of products supports managed care workflows for a variety of risk-bearing organizations including health plans, self-funded organizations, third-party administrators, and accountable care organizations. Serving clients in both the public and private sectors, the company’s software is designed by and developed for clinical end users performing utilization review, appeals, case management, population health, and quality program interventions. The majority of TCS clients hold NCQA and URAC accreditations. HCAP Partners’ investment provides growth capital for the company to support the development of its ACUITYnxt software platform, a SaaS-based managed care software solution that surpasses the latest industry requirements while providing an end user experience that is intuitive and efficient.
“HCAP Partners’ investment has provided not only capital for growth but also a team that continues to act as a valuable and trusted resource,” stated Deborah Keller, RN and CEO of TCS Healthcare Technologies. “They were extremely easy to work with during the transaction and they sought to really understand TCS’ culture. We are pleased to have their ongoing support as we continue to grow.”
Hope Mago added, “TCS Healthcare’s experienced senior leadership, strong industry reputation, impressive customer retention rate, and high customer satisfaction scores made this an attractive investment for HCAP Partners. We believe there is an opportunity to leverage these features to scale the company in the fast-growing population health segment.”
In connection with this transaction, TCS Healthcare Technologies is also pleased to announce the addition of Scott Paddock, President of GuideWell Connect, to its board of directors. Scott brings more than 15 years of experience in senior roles in healthcare, previously serving as President and Chief Operating Officer for COTA Healthcare, a healthcare data and analytics company that supports providers, payers, and life science companies focused on diagnosing and treating complex diseases. Prior to COTA, Paddock served as President for Homecare Homebase, a Dallas-based provider of home health, electronic medical record (EMR), mobility, financial, clinical, compliance, analytical, and educational solutions, and previously served MedeAnalytics as Executive Vice President and General Manager of its Health Plan Solutions division.
Whitehawk Advisory served as exclusive financial advisor to TCS Healthcare Technologies in connection with the transaction. The transaction was led by Whitehawk Advisory Managing Director Alex Klingelberger.

About HCAP Partners
HCAP Partners was founded in 2000 and is a provider of mezzanine debt and private equity for underserved, lower-middle market companies throughout California and the Western United States. The firm seeks to invest $2 million to $15 million in established businesses generating between $10 million and $100 million in revenues in the healthcare, software, services, and manufacturing industries. HCAP Partners has invested in over 40 companies since it was founded and through ongoing, active engagement with portfolio companies the team at HCAP Partners provides value-added resources to help optimize performance and increase enterprise value. The firm has been recognized as an ImpactAssets 50 fund six years running and, through its Gainful Jobs Approach™, works to facilitate a positive impact on underserved businesses, their employees, and their communities through active portfolio engagement. For more information, please visit www.hcapllc.com.

About TCS Healthcare Technologies
TCS Healthcare Technologies (TCS) is a leading provider of software and clinical solutions that support and improve medical management operations for health plans, TPAs, ACOs and other case management organizations. TCS’ team of US-based clinicians and developers are recognized for their best-in-class managed care expertise and customer support throughout the industry.

About Whitehawk Advisory
Whitehawk Advisory is a boutique investment banking firm led by Alex Klingelberger. Whitehawk is based in Austin, Texas and focuses on providing bespoke investment banking and corporate valuation services to leading middle market and emerging growth technology companies. For more information, please visit www.whitehawkadvisory.com.