Headway completes first deal from HIP IV

Headway Capital Partners has closed the first transaction from its latest secondaries fund by backing the acquisition of a minority stake in a US medical billing company from a tech-focused investment firm.

The London-headquartered secondaries firm used capital from its HIP IV fund to allow Founders Equity, a small- and mid-cap private equity firm, to buy Safeguard Scientific‘s interest in AdvantEdge, according to a statement. The stake includes a mix of equity and debt originally held by Safeguard.

“We are very excited to have partnered with Founders Equity and AdvantEdge in completing this transaction, and to have provided a compelling liquidity solution to the minority investor,” Clifford Meijer, managing director at Headway, said in the statement.

Headway declined to comment on the size of the deal.

Founders Equity, which was already a majority owner of AdvantEdge, is managing the stake on behalf of HIP IV, according to the statement.

New Jersey-headquartered AdvantEdge is a billing, coding and practice management company for physicians, hospitals, behavioural health agencies and office-based medical groups.

HIP IV launched in February last year with a €300 million target, according to PEI data. It is unclear how much the vehicle has raised so far.

Safeguard announced in January that it would no longer be making fresh investments and would focus on supporting its existing portfolio.