HealthGrowth Capital, LLC, based in Austin, Texas, has closed a $16.8 million financing consisting of both debt and equity. "Our business has matured significantly since our founding nearly four years ago and we are pleased to have reached these significant funding milestones as we take our company to the next level," said Karl Kipke, Chief Executive Officer of HealthGrowth Capital.  "This is a critical moment when pharmacy owners need capital and other resources to satisfy patient needs in the face of the COVID-19 global pandemic," Kipke added. "We are prepared to help our customers and partners navigate through these challenging times and, together, we will emerge stronger than ever."

The debt portion of the financing consists of an initial $10 million credit facility provided by Old Hill Partners, based in Darien, Connecticut. The credit facility has an accordion feature to expand into a larger facility under certain terms and conditions. "We are excited to offer HealthGrowth Capital this debt financing to fund its future growth. Given its extensive expertise in pharmacy lending and advisory services, we are confident in HealthGrowth's capacity to support its customers in this time of need," said Peter Faigl, Senior Portfolio Manager.

The equity tranche of the financing includes a $6.8 million Series B round. Several leading pharmaceutical and pharmacy industry participants invested in the round. "This capital positions HealthGrowth as a key lender and advisory services resource for every independent pharmacy in the United States," Kipke added.