Parthenon Capital Partners backed The Coding Source with a growth equity investment, a deal that helped fund the company's acquisition of Sinaiko Healthcare Consulting. Greg Sinaiko heads The Coding Source as CEO while is father, Richard, founded Sinaiko Healthcare Consulting. Terms of the Parthenon investment or the subsequent acquisition were not disclosed.

Uniting the two companies will create a broader set of consulting services to assist providers and health plans with technical coding and compliance matters. Capital from the transaction will be used to provide liquidity to “certain shareholders,” according to a joint statement from the PE firm and the company, and to pursue growth opportunities. Calls seeking comment were not acknowledged by press time.

Triple Tree advised The Coding Source and Sinaiko Healthcare Consulting. Falcon Capital Partners advised Parthenon Capital Partners.

David Ament, managing partner at Parthenon Capital Partners, and Brad Sloan, a vice president, worked on the deal for the private equity firm. The private equity firm’s most recent fund, Parthenon Investors III, closed in 2007 with about $700 million.

Parthenon has made numerous investments in healthcare companies across the sector over the years. Currently, its portfolio contains six healthcare companies: Abeo, an anesthesia distributor; Intermedix and Medical Consultants, both tech companies for emergency medical services; Med-Tel International, which serves the MRI and diagnostic imaging space; Med Assets, a supplier of medical equipment and Triad Isotopes, which distributes drugs used in diagnostic imaging.

While strategic bids have been increasing in the healthcare space, it seems that regularly, financial buyers are stepping up to make investments. Sweeping legislation aimed at increasing Americans’ access to healthcare has helped usher in a number private equity firms eager to make buys all over the pharmaceutical and care spaces. Buyers including Cerberus Capital Management, Irving Place Capital and Avista Capital have sought to make deals all over the sector through various plays.