ALEXANDRIA, Va. & RICHMOND, Va.–(BUSINESS WIRE)–Oxford Finance LLC (“Oxford”), a specialty finance firm that provides senior debt to healthcare services and life sciences companies worldwide, today announced the closing of a $47 million senior credit facility to Averhealth (or “the Company”), a provider of substance use testing and monitoring services tailored to the unique needs of courts and social service agencies. Averhealth is a portfolio company of Five Arrows Capital Partners (“Five Arrows”), the PE investment strategy of Rothschild & Co., a global advisory and asset management company.
Proceeds from the transaction are being used for general working capital, to refinance existing debt, and for permitted acquisitions.
Established in 1995, Averhealth is a provider of drug testing, patient management, and support services to substance use disorder (“SUD”) rehabilitation programs managed by local, county, and state government agencies and courts. Today, Averhealth serves more than 1,800 courts and treatment providers across 30 states, integrating all substance use monitoring activities.
“We are excited to invest in a company with an innovative combination of technology and lab testing services,” said Tracy S. Maziek, head of healthcare services at Oxford Finance. “Averhealth’s exclusive service offering has set it apart from other players in the toxicology testing market, helping to improve overall levels of patient care in our country’s battle against the ongoing substance abuse epidemic.”
“From our initial discussions with Oxford, it was clear they understood the unique value proposition offered by Averhealth to its customers,” said Jason Herzog, CEO of Averhealth. “We are thrilled to be partnering with a firm that understands the unique needs of our business and has provided the capacity to support our continued growth.”
“The Oxford team worked quickly to get up to speed on a complex business,” said Michael Langer, managing director at Five Arrows. “They recognized the needs and challenges of our rapidly expanding business and developed a structure that not only solved for our immediate needs but also provided flexibility for future growth.”
About Oxford Finance LLC
Oxford Finance is a specialty finance firm providing senior secured loans to public and private life sciences and healthcare services companies worldwide. For over 20 years, Oxford has delivered flexible financing solutions to its clients, enabling these companies to maximize their equity by leveraging their assets. In recent years, Oxford has originated over $6 billion in loans, with lines of credit ranging from $5 million to $150 million. Oxford is headquartered in Alexandria, Va., with additional offices in San Diego, Calif.; Palo Alto, Calif.; and the greater Boston and New York City areas. For more information, visit https://oxfordfinance.com/
Since 1995, Averhealth has specialized in providing substance use testing and monitoring services tailored to the unique needs of judicial programs that operate at the holistic intersection of justice-involved and behavioral health. Today, Averhealth serves more than 350,000 clients across 30 states. Every element of the Averhealth solution incorporates evidence-based practices, positioning programs and clients for the best possible outcome. Random selection, daily engagement, robust sample collection, and next business day results combine to help clients develop coping and refusal skills to new-use events. With Averhealth’s agile and easy-to-navigate software and automation tools, it streamlines your daily workflow and ultimately supports recovery. For more information, please visit https://www.averhealth.com.
About Five Arrows Capital Partners
Five Arrows Capital Partners is the North American corporate private equity business of Rothschild & Co. Merchant Banking (RMB), the investment arm of Rothschild & Co. With offices in London, Paris, Luxembourg, New York and Los Angeles, RMB has over $15 billion of assets under management. Like RMB’s European corporate private equity business, FACP is focused on investing in middle market companies with highly defensible market positions, business models with a proven history of generating attractive returns on invested capital across economic cycles and multiple untapped levers for value creation. Sector focus of FACP is on healthcare; business services; and data, software & technology-enabled services. For more information, please visit https://www.rothschildandco.com/en/merchant-banking/corporate-private-equity.