The CapStreet Group has completed a majority recapitalization of Keais Records Service in partnership with the senior management team of the company. Keais is CapStreet’s first investment in its fourth fund, CapStreet IV, LP.
Keais is a provider of outsourced document retrieval services for insurance carriers and law firms. The company retrieves medical records and other supporting documents that are used to verify claim benefits or as supporting evidence in legal processes. Keais is one of the leading national providers of document retrieval services to the insurance industry and is one of the few companies capable of offering record retrieval services in all 50 states. The company was founded in 1975 and is headquartered in Houston (www.keais.com).
“We believe the company is well-positioned to benefit from favorable tailwinds within the outsourced record retrieval market for P&C carriers. We know that Newton Ross, CEO and the rest of the Keais team will be great partners as we work together to grow the company via acquisitions and organic growth initiatives,” said Neil Kallmeyer, CapStreet managing partner.
CapStreet makes control investments in privately held, lower middle market companies that are headquartered in Texas and surrounding states. CapStreet targets industrial and diversified business service companies with annual EBITDA between $5 million and $20 million. Since the firm’s founding in 1990, CapStreet has invested in 35 platform companies. The firm is headquartered in Houston (www.capstreet.com).
“We are excited to welcome the CapStreet team as partners in this next phase of growth for Keais,” said Newton Ross, CEO of Keais Records Service. “CapStreet has a long, well-respected history of partnering with companies like ours to help them grow quickly and increase profitability.”
Boutique investment bank Healthcare Growth Partners (www.hgp.com) advised Keais on the transaction. Willkie, Farr, & Gallagher served as legal counsel to CapStreet and Thompson & Knight served as legal counsel to Keais.
© 2015 PEPD • Private Equity’s Leading News Magazine • 2-10-15
