CapStreet Acquires Vendor Credentialing Services


The CapStreet Group has completed the majority recapitalization of Vendor Credentialing Services, a provider of web-based vendor credentialing. “We believe The CapStreet Group’s experience with rapidly growing companies make them ideal partners as we pursue our next phase of growth,” said Troy Kyle, president and co-founder of VCS.

Vendor Credentialing Services is a provider of web-based vendor credentialing, vendor compliance and vendor access services to healthcare facilities. Customers include hospital systems, group purchasing organizations and integrated delivery networks. The company is based in Houston, TX (www.vcsdatabase.com).

“This transaction positions VCS for the future. CapStreet’s proven track record of building leading companies through organic and strategic growth initiatives and infrastructure investment will be a tremendous asset to us as we move forward,” said Vice President and co-founder Garry Kyle
.

CapStreet targets companies with initial EBITDA between $5 million and $15 million and works closely with the management of these companies to help build much larger and more profitable enterprises. CapStreet was founded in 1990 and since inception has raised approximately $700 million of private equity, completed 32 portfolio company investments and completed more than 250 add-on acquisitions for these companies. The firm is based in Houston, TX (www.capstreet.com).

CapStreet’s transaction team for this investment included Neil Kallmeyer, Kathy Kohlmeyer, Adrian Guerra, and Tom Caughlin.

“Through their pioneering efforts and hard work, Troy Kyle and Garry Kyle, and the rest of the VCS management team have built an industry-leading company centered around a superior software solution and outstanding customer service,” said CapStreet partner Neil Kallmeyer. “Our objective is to partner with the VCS team to build upon their past success and accelerate the next phase of growth.”

McColl Partners advised VCS on the recapitalization. Michael Beller, Attorney at Law, served as VCS’ counsel. Vinson & Elkins represented The CapStreet Group in the transaction.