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EQT, Towerbrook and CD&R bet on RCM; OEP looks to deliver on the hybrid work experience

Good morning, PE Hubsters! Rafael Canton here filling in for John R Fischer this Friday with the US edition of the Wire from the New York newsroom. I will be subbing in for John for the next couple of Fridays as well.

To close out the week, we have a very tech-focused Wire. Technology happens to be one of my sectors of focus – along with consumer and retail, and sports – at PE Hub.

First, there’s been a steady stream of deals in the revenue cycle management (RCM) space. With big data and AI playing a part, private equity has been keen to invest in the RCM segment. We take a look at a handful of deals from PE firms such as EQT, Towerbrook Capital Partners and Clayton, Dubilier & Rice.

Then, we have a deal from late yesterday to look at. One Equity Partners has acquired Yorktel, a Wall, New Jersey-based IT services firm.

We will finish with some thoughts from Thoma Bravo co-founder and managing partner Orlando Bravo about the impact AI will have on technology companies and how he has a forward-looking focus in dealmaking.

Collecting bills

Revenue cycle management (RCM) systems are used by US healthcare organizations to manage billing patients and collecting fees. PE Hub reporter John R Fischer writes that RCM systems have become increasingly complex, which has led to private equity dealmaking opportunities.

Read the premium version of the Wire to find out more on this and the recent deals announced in the RCM category.

Modernizing collaboration

Speaking of the tech sector, we have a deal from late yesterday. One Equity Partners has acquired Yorktel, an IT services firm.

Subscribe to the premium version of the Wire to learn more about the deal.

All about future

Finishing off this tech-focused Wire, let’s shift over to AI. With the rise of AI, naturally there will be software companies that are affected. Speaking at a virtual event Collective[i] Forecast, Thoma Bravo co-founder and managing partner Orlando Bravo said one of the verticals that people are seeing heavily affected today by AI are call centers.

Recently, PE Hub editor in chief MK Flynn interviewed Bravo. They had a chat about the evolving landscape for PE tech deals at this moment and the conversation covered everything from falling interest rates to rising cybersecurity threats.

MK will interview Orlando Bravo at NEXUS 2025 next March.

Premium subscribers can learn more about Orlando Bravo’s thoughts on AI in the software industry and broader technology sector from the virtual event.

That’s it from me today. If you have any questions or want to chat about the technology sector or anything else, please email me at rafael.c@pei.group.

Have a nice weekend. On Monday, Craig McGlashan will be with you for the Europe edition of the Wire, and MK Flynn will bring you the US edition.

Cheers,

Rafael

Read the full Wire commentary on PE Hub ...

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They said it

“One of the ways the [software] industry will evolve is no more user-based pricing in software, even for software companies that are not AI native companies. How we think traditionally of a workflow following a business process that may be completely disrupted.”

— Orlando Bravo, co-founder and managing partner at Thoma Bravo, on how AI will impact software companies