PE-backed ClearBalance closes dividend recap

ClearBalance, which is backed by Angelo, Gordon & Co‘s private equity group, has completed a dividend recapitalization. Madison Capital Funding LLC and THL Credit Logan JV LLC provided $50 million in financing for the transaction. Based in San Diego, ClearBalance provides patients with loans to help pay their medical care.


NEW YORK – August 19, 2015 – The Private Equity Group of Angelo, Gordon & Co. announced today that its portfolio company ClearBalance has closed on a new $50 million credit facility led by Madison Capital Funding LLC. THL Credit Logan JV LLC has also joined the syndicate. The capital will be used to fund a dividend to shareholders as well as support the continued growth of ClearBalance, which is the premier provider of consumer-friendly loan programs, enabling patients to pay for their medical care.

“ClearBalance has shown tremendous growth since we originally invested in the company in December 2012,” said Art Peponis, Head of Private Equity at Angelo Gordon. “The high quality of the company’s value-added product and customer service is reflected in the 60% growth in loan volume we have experienced since our original investment. ClearBalance has serviced more than 4 million patient accounts at hundreds of health systems, clinics and physician practices nationwide. ClearBalance is a great example of the growth-oriented financial services investment opportunities we target in the lower middle market. We’re pleased to close this new facility and appreciate the continued support Madison Capital has provided since 2012.”

San Diego-based ClearBalance was founded in 1992 and has longstanding partnerships with organizations including Adventist Health System, Ascension Health, Texas Health Resources, Virginia Mason, Faxton St. Luke’s and many more. ClearBalance pioneered zero-interest loans in 2003 and continues to lead innovation in the industry. The company recently introduced the industry’s first and only HFMA peer reviewed ROI calculator, called the ClearBalance ROI Value ModelTM, enabling health systems to evaluate their patient pay performance standards.

“Health systems are placing a higher priority on consumer-centric affordable care and have a greater need for ClearBalance financing services,” said Mitch Patridge, Chief Executive Officer of ClearBalance. “Patients expect a ‘retail’ experience from their healthcare provider for care quality, convenience and affordability with zero-interest, no-fee loan programs. Our healthcare partners are able to increase their operating margins by improving patient satisfaction and cash collections. Through our partnership with Angelo Gordon and this new credit facility, we’re able to offer more products and increase our investment in technology and infrastructure to better serve our growing base of customers. We look forward to continuing our work to help both patients and our healthcare partners with their payment solutions.”

About Angelo, Gordon & Co.
Angelo, Gordon & Co., L.P. is a privately held limited partnership founded in November 1988, and currently manages approximately $27 billion. The Firm manages capital across three principal asset classes: (i) credit, (ii) real estate, and (iii) private equity. The private equity group focuses on investments of $25 million to $125 million in growth-oriented companies in the financial services and consumer/retail sectors. The Firm is an SEC-registered investment adviser.

About ClearBalance
ClearBalance partners with U.S. hospitals and health systems that want to provide consumer-centric affordable care. We are the leader in consumer-friendly patient loans, serving more than 4 million patient accounts while maintaining the industry’s highest patient loan repayment rates. Our healthcare partners successfully address the increasing cost of patient pay without sacrificing their financial performance. They can also ensure a positive experience for patients who appreciate the ability to affordably repay their direct cost of health care and come to regard the health system as their care location of choice. In a recent survey sampling, patients rated ClearBalance and its Patient Experience customer service center at 95% or higher for problem resolution, courteous treatment, and in recommending the ClearBalance program to a friend.