Oxford Finance closed a $47 million senior credit facility to Averhealth, 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.”