Prudential Capital Group is adding to its healthcare portfolio with a $38 million investment in MediGain.
MediGain is a Texas-based provider of revenue cycle management (RCM) solutions and analytics for the healthcare industry.
Chicago-based Prudential manages four mezzanine funds with more than $3.5 billion in total commitments for investment in mid-market companies in North America. The firm is currently investing out of its fourth fund which closed on $1.15 billion in December 2012, according to Private Equity International’s research and analytics division.
Fund IV will invest between $10 and $100 million in North American recapitalisations, growth financings, buyouts and acquisitions.
MediGain plans to use the investment to support its organic growth plans which have seen a boost since the implementation of the Affordable Care Act (ACA). The company is also pursuing opportunistic acquisitions to build out its offering.
“This positions MediGain as the fastest growing RCM company in the country,” said Dinesh Butani, chairman of MediGain in a statement.
Prudential was most recently in the news for its investment alongside Capital Dynamics in Green Pastures, a large-scale wind energy project in Texas. Capital Dynamics invested from its Clean Energy Infrastructure Platform for the transaction. The project is expected generate enough electricity to power 110,000 homes as PEI reported earlier this month.