Kirkland represented Mercato on its Series B investment in Paytient
Kirkland represented Mercato on its Series B investment in Paytient
Kirkland provided advice to Mercato Partners Traverse Fund, a Utah-based private equity firm, as it took the lead in a Series B growth equity investment in Paytient, the creator and dominant provider of Health Payment Accounts (HPAs).
The financing was participated in by multiple investors, including Bertelsmann Investments and other significant existing investors from Paytient's Seed and Series A rounds. The conclusion of the investment was announced on January 10, 2023.
Paytient declared a $40.5 million Series B financing round, which brings the firm's total funding to $63 million. The funds, comprising of $33 million in equity from new and current investors and $7.5 million in debt from Silicon Valley Bank, will be utilised to accelerate growth and enhance product development in 2023 and future years.
The round was spearheaded by Mercato Partners Traverse Fund, located in Utah, with participation from Bertelsmann Investments. They were joined by current investors Lightbank, Felicis Ventures, Box Group, Lachy Groom, Left Lane Capital, Commerce Bank, Crossbeam Ventures, Cultivation Capital, and Inspired Capital, who took the lead in Paytient's Seed and Series A rounds. Joe Kaiser, Managing Director of Mercato Partners Traverse Fund, will be joining the company's board of directors and Thorsten Wirkes of Bertelsmann Investments will be joining as an observer.
Paytient, founded in 2018, aims to help Americans manage their out-of-pocket healthcare expenses with their Health Payment Accounts (HPAs). The company partners with responsible employers and insurers to offer an alternative source of funding in the form of interest-free credit on a Visa card, and provides a user-friendly app for cardholders to manage flexible repayment plans that align with their budget.
The Kirkland team was led by corporate partner Dan Daines and associate Zach Miller, with corporate partners Adam Phillips and Travis Nelson; tax partners Devin Heckman and David Morris; technology & IP transactions partner Amber Harezlak; executive compensation partner Rohit Nafday; healthcare regulatory partner Kate Sullivan; and banking and financial institutions partner Edwin del Hierro.
