PE Firm Carlyle acquires Knack, EqualizeRCM; More Buys Likely

Global investment giant Carlyle has acquired a majority stake in the US based healthcare revenue cycle management (RCM) firms Knack RCM and EqualizeRCM, with plans to combine the two into a global, multi-specialty platform.

The investment will be routed through Carlyle Asia Partners VI and Carlyle Asia Partners Growth II funds. Financial terms of the transaction were not disclosed.

Existing founders Rajiv Sharma (Knack) and Nagi Rao (EqualizeRCM) will retain stakes in the combined entity through partial reinvestment, according to a statement.

“The U.S. healthcare revenue cycle market is growing rapidly, driven by margin compression, workforce shortages, and the shift to value-based care. Carlyle has significant experience in scaling RCM platforms to achieve market leadership and we believe Knack and Equalize stand out as leaders with their AI-native, specialty-focused, and outcomes-driven approach,” said Kapil Modi, Partner, Carlyle India Advisors.

Knack and EqualizeRCM operate in complementary segments of the US healthcare RCM market, serving physician groups, durable medical equipment providers, rural hospitals and other specialty segments.

The combined platform is expected to expand scale, diversify service offerings and strengthen delivery capabilities across geographies including the US, India and the Philippines, said the private equity firm.

Carlyle said the transaction aligns with its strategy of building scaled platforms in fragmented sectors. The firm has previously invested in healthcare technology and RCM-related businesses, including Indegene, Visionary RCM and CorroHealth.