BillingTree announced a private equity investment this morning. AccountsRecovery.net sent five questions to Dave Yohe, the Vice President of Marketing for BillingTree. He was kind enough to send back answers. Here are those five questions.
- Will BillingTree disclose the size of the investment, or the corresponding valuation that it puts on BillingTree?
The amount was not disclosed. We now have a new majority investor and recapitalization of the company by Parthenon Capital Partners in partnership with BillingTree’s current senior management team that includes two Board of Director seats.
- What does BillingTree plan to use the investment for? Are there specific areas of the business it will make investments in?
BillingTree will continue its existing strategy of expanding our presence in ARM and adjacent industry verticals. We believe we have the resources and expertise to be successful in those verticals and will continue to prioritize efforts to expand in areas such as healthcare, credit unions, auto finance, insurance and property management.
- Why was there a need to receive this investment now? Was there anything special related to the timing?
BillingTree is uniquely poised for growth and our shareholders were not in a position to invest back into the company. The management team, with the blessings of the shareholders, were able to find a great financial partner in Parthenon.
- How does this investment set BillingTree apart from other payment processing companies in the ARM space?
BillingTree has experienced significant growth and momentum over the past few years, achieving a number of important milestones, such as the launch of our proprietary Payrazr product suite in 2015. Our Management Team is excited to be partnering with Parthenon and believe that the Company’s best years lay ahead. Parthenon investment will give us the ability to improve our offerings to our current and future customers.
- What was it about Parthenon that makes them a good partner for BillingTree?
Parthenon has invested in both the collections and revenue cycle management market on multiple occasions over the firm’s 18-year history. Collections-specific investments include Arrow Financial Services (sold to Sallie Mae) and Performant Financial. Parthenon is a growth-oriented private equity firm that partners with and invests in leading management teams and their companies.