The Economic Times reported:
Private equity (PE) fund Carlyle Group has signed an agreement to acquire a significant majority stake in Knack Global, a Florida-based revenue cycle management (RCM) solutions provider, at a valuation of around $500 million, people aware of the deal told ET.
Knack's current PEU (private equity underwriter) owner is LKCM Headwater Investment. I assume Carlyle's stake will displace some or all of LKCM's.
Knack Global's website states:
Through an innovative, tech enabled approach to revenue cycle service delivery and practice support services, Knack RCM offers healthcare providers a customized approach to achieving financial freedom. Knack optimizes workflows through AI-driven automation, a deep bench of scalable global talent, and customizable end-to-end or standalone services, creating efficiencies that drive profitability.
Flashback to Columbia/HCA when Rick Scott was CEO. His aggressive approach to overbilling government payers cost HCA $1.7 billion in federal settlements. I'm sure Scott would love to have blamed any "discrepancies" on AI algorithms. Scott is now the senior U.S. Senator representing Florida and the former governor.
Knack Global has grown through a series of rollup acquisitions, a common PEU strategy.
March 2025 - bought PPM Partners
January 2025 - purchased HealthyBOS
August 2024 - acquired Merrick Management
The Carlyle Group currently has 49 healthcare affiliates. It recently announced an investment in Ingentis, a Human Resources AI firm.
Carlyle selects firms with hot growth potential and high profitability for investment. It also cross sells affiliate services within its PEU family. I imagine Knack and Ingentis will do that and more for Carlyle.
Politicians Red and Blue love PEU and their new TechGod brethren. Increasingly more are one.