Kayne Partners, the growth equity strategy of Kayne Anderson Capital Advisors LP, an alternative asset management firm with over $33 billion under management, has exited RfXcel Corporation, a SaaS-based track and trace software provider to the food and life sciences sectors. This follows the recent recapitalization of Azalea Health Innovations Inc., a tech-enabled revenue cycle management and cloud-based electronic health record software provider, for the rural healthcare market.
Leon Chen, managing partner of Kayne Partners, said, “Our investment in RfXcel represents our long-standing view that the lack of transparency within global supply chains has created significant industry-wide challenges, particularly in the life science and food distribution sectors. The potential for counterfeiting and contamination of critical assets, such as pharmaceutical drugs, can lead to consumer illness or death, and the financial liabilities to the manufacturers and those in their ecosystem can be significant. We identified RfXcel as an industry leader solving these major pain points for their customers, sitting at a cross-section of industry theses we had within healthcare IT, supply chain, and compliance.”
“Our partnership with the team at Kayne Partners allowed us to leverage Kayne’s extensive network and breadth of resources, which proved critical in helping transform RfXcel from an emerging software business to a recognized market leader in the industry,” stated Glenn Abood, CEO of RfXcel. “The access we were provided for high quality talent, partnerships, and business development opportunities, coupled with the guidance from Kayne Partners, was instrumental in helping us achieve the successful outcome of this acquisition.”
Kayne Partners portfolio company, Azalea, also recently received a recapitalization and the close of a majority financing by LLR Partners, a lower middle market private equity firm focused on the technology and healthcare sectors. With this recapitalization, Kayne Partners has fully exited its investment in Azalea.
“At the time we invested, we saw that the rural healthcare market had lagged behind resource-rich urban environments regarding the adoption of EHR and RCM technologies, creating an opportunity for Azalea to help providers and health systems drive efficiencies and adapt to regulatory changes,” commented Kanye managing partner and co-head of growth equity, Nishita Cummings. “It has been a privilege to work with Baha Zeidan, CEO and founder of Azalea, and his entire team to help build and institutionalize this platform which is exceptionally well-positioned to continue its growth trajectory.”
“Kayne Partners has been a terrific partner through our journey together. From the time Kayne initially invested, the team was invaluable in helping us attract new talent, refine our internal processes and enhance our value proposition to our customers. They played a key role in helping us identify acquisition targets and worked with us all the way through the final stages of the acquisitions that contributed to geographic and product expansion. Nishita and the Kayne Partners team were true partners to Azalea, being by our side through opportunities and obstacles, and their leadership helped enable this great outcome for the company,” added Baha Zeidan, CEO at Azalea.
O’Melveny advised RfXcel in its acquisition by Antares Vision Group. O’Melveny also advised Kayne in exiting Azalea Health.