TL/DR –
Carlyle has acquired majority stakes in Knack RCM and EqualizeRCM to create an AI-native, global healthcare revenue cycle management platform. The founders of both companies will stay invested in the combined platform. The new platform aims to enhance operational scale, delivery capabilities, leadership strength, and accelerate AI capabilities to improve outcomes for healthcare clients, while Carlyle plans to expand it further through more acquisitions in the healthcare revenue cycle management industry.
Carlyle Acquires Majority Stakes in Knack RCM and EqualizeRCM
Carlyle recently acquired majority interests in Knack RCM and EqualizeRCM, with the intention of forming a multi-specialty healthcare revenue cycle management platform with native AI capabilities. The financial details of these transactions have not been revealed.
The investment funds associated with Carlyle Asia Partners VI and Carlyle Asia Partners Growth II are financing the investment. Rajiv Sharma, founder of Knack RCM, and Nagi Rao, founder of EqualizeRCM, will stay invested in the combined platform.
About Knack RCM and EqualizeRCM
Knack and EqualizeRCM offer healthcare revenue cycle management services to various healthcare sectors, including physician groups, rural hospitals, and specialty healthcare segments. They specialize in areas such as anesthesia, eyecare, behavioral health, and urgent care.
The combined platform is expected to improve operational scale, enhance delivery capabilities, and accelerate AI capabilities, leading to better outcomes for healthcare clients. Knack brings global delivery operations from the U.S., India, and the Philippines through its Workmate orchestration platform. EqualizeRCM offers proprietary payer enrollment software and AI-driven tools like Bill Smart.
AI-native Platform and Future Plans
EqualizeRCM’s AI-native platform is built on large language models and agentic AI technologies. It has shown commercial success in hospital and durable medical equipment markets. Carlyle plans to extend the platform strategy through more acquisition opportunities within the healthcare revenue cycle management industry.
Company Profiles
Knack RCM, based in Woodbridge, New Jersey, employs over 8,000 people across delivery centres in India, the Philippines, and the US. EqualizeRCM delivers revenue cycle management services for physicians, hospitals, and rural healthcare providers.
Comments from Key Stakeholders
Kapil Modi, Partner at Carlyle India Advisors, mentioned, “The U.S. healthcare revenue cycle market is growing rapidly. Carlyle has significant experience in scaling RCM platforms to achieve market leadership. We believe Knack and Equalize stand out with their AI-native, specialty-focused, and outcomes-driven approach.”
Rajiv Sharma, Founder of Knack RCM, said, “Carlyle has been a trusted partner to Knack. The addition of Equalize strengthens the value we provide to our clients.”
Nagi Rao, Founder of EqualizeRCM, stated, “Partnering with Knack enables us to integrate our advisory expertise with their advanced analytics and global operations. We are excited to work with Knack and Carlyle to drive wider adoption of our AI-native platform.”
Gautam Barai, CEO of Knack RCM, noted, “Coming together with Equalize allows us to combine our strengths to tackle the most complex parts of the revenue cycle.”
Amit Jain, Partner and Head Of Carlyle India Advisors, added, “This investment extends our India for the World thesis and builds on our experience investing in technology and tech-enabled services. We plan to scale the combined Knack and Equalize platform.”
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