Private equity firm Aldrich Capital Partners is investing $75 million into Compliancy Group, which develops HIPAA compliance solutions for MSPs and other types of vendors.
Compliancy Group's proprietary platform, known as The Guard, covers regulations like HIPAA, OSHA and more to protect and prepare organizations in case of an audit, the company said. The firm also offers coaching services to help MSPs and other types of organizations to strengthen their compliance practices.
The funding will allow Compliancy Group to further extend into such areas as the Cybersecurity Maturity Model Certification (CMMC), the NIST Cybersecurity Framework and other areas of expertise that MSPs must address, CEO Marc Haskelson tells ChannelE2E.
Compliancy Group Business Background
Compliancy Group, founded in 2005 by former auditors, has ranked among the Inc. 5000 list of fastest growing private companies in America for two consecutive years. True believers include the American Dental Association (ADA) and ADA Member Advantage -- which in March 2021 selected Compliancy Group as the exclusive HIPAA compliance management solution recommended for all association members.
Compliancy Group also has a HIPAA Alliance Marketplace -- which allows healthcare professionals to find HIPAA compliant MSPs and solution providers, known in that corner of the industry as business associates (BAs). Vendors within the marketplace are heavily vetted against HIPAA rules and verified by the Compliancy Group HIPAA Seal of Compliance.
Poke around, and you'll also find free expert guidance from the organization. For instance, Compliancy Group weighed in on the HIPAA Safe Harbor Bill here.
Investment for Compliance Solutions: Executive Perspectives
In a prepared statement about the investment, Haskelson said:
“Many companies pursued Compliancy Group to provide investment capital that would allow us to accelerate our growth and presence in the market. We were extremely diligent during our selection process, choosing the firm that would be best for our clients and partners. My strong belief is that compliance and security are critical in the SMB and mid-market enterprise sectors. We chose Aldrich Capital Partners to help us reach our ambitious goals because of their background in healthcare technology and shared vision for the company. With this investment, we are the leader in Regulatory Compliance in the SMB and mid-market enterprise space.”
Added Raz Zia, general partner of Aldrich Capital:
“Over the last five years, we have had the pleasure of getting to know Marc and his team at Compliancy Group and were consistently impressed by their ability to deliver year after year. The combination of Compliancy Group’s software platform, experienced compliance coaches and thought leadership in the space will enable them to continue their history of strong, profitable growth.”
About Aldrich Capital Partners
Private equity firm Aldrich Capital Partners typically invests in three market segments:
- Software and cloud services;
- business services and fintech; and
- healthcare IT.
In many ways, the Compliancy Group investment spans all three of those segments.
