BETHESDA, Md., May 15, 2013 /PRNewswire/ -- Rapid Financial Services, LLC (dba RapidAdvance), one of the nation's leading providers of short-term working capital to small businesses, today announced that they have acquired the operating assets of Professional Merchant Advance Capital , LLC ("ProMAC"). The assets will be owned by a new entity, Promac Health Care Financing, LLC ("PHCF"), which will operate as a separate business from RapidAdvance offering customized and unique financing solutions to health care providers of all kinds including individual health care practices, pharmacies, clinical facilities, and in-home health care providers. The business will be headquartered in Long Island, New York and Stephen McDermott, former CEO of ProMAC, will continue in his role as CEO of PHCF.
Rapid Financial Services, LLC's Chief Executive Officer, Jeremy Brown stated: "We have seen a great increase in the demand for financing within the health care space and believe aligning our expertise in small business funding with PHCF's unique financing products will allow us to deliver a state of the art solution for health care providers."
PHCF has an innovative set of risk mitigation products that enables the company to control the flow of funds from medical reimbursements; including but not limited to government and private insurance payments. RapidAdvance will be supporting the efforts to grow the company in an accelerated manner by providing PHCF access to capital, marketing and technology resources and back office support.
"We are impressed by the team that Stephen has built over the past five years and look forward to helping the company reach its full potential as a leading provider of working capital solutions in amounts up to $500,000 for health care providers," Brown added.
Stephen McDermott, CEO of PHCF stated: "We see this as an exceptional opportunity to enhance our position within the health care financing industry. With the support of RapidAdvance we hope to recognize broader market penetration, financial stability and improved operational efficiencies allowing us to execute on all phases of our strategic growth on an accelerated time table. RapidAdvance is a proven leader in the alternative financing industry and we are delighted to be part of the organization; we enthusiastically look forward to our future opportunities."
Additional investors in PHCF include Steven Mandis, a former executive at Goldman Sachs and Citigroup and consultant to McKinsey and a current investor in RapidAdvance, and Howard Wietschner, former Managing Director, Partner and Hedge Fund Industry Group Chief at Goldman Sachs.
About RapidAdvance: RapidAdvance is a leader in the alternative financing industry providing working capital solutions to meet the needs of small and mid-sized businesses. RapidAdvance offers small business owners multiple financing options designed to meet the capital needs of established low-risk businesses, businesses with financial challenges, and newer businesses. RapidAdvance 's suite of products offers business owners the ability to obtain financing to grow their business. Funding can be used for virtually any business purpose including purchasing new equipment, inventory/seasonal merchandising, expansion/remodeling, paying off debt/taxes, and emergency funding. RapidAdvance also offers a partner program for companies who work with small businesses. For more information, visit http://www.rapidadvance.com.
About Steven Mandis: Steven Mandis is an adjunct professor at Columbia University Business School. Formerly, Mr. Mandis was an executive at Citigroup in various roles including Chief of Staff to the President and Chief Operating Officer of Citigroup; Vice Chairman of Citigroup's Institutional Clients Group (ICG); and a member of the Executive, Management and Risk Management Committees of ICG. Prior to joining Citigroup, Mr. Mandis was a senior advisor to McKinsey & Company. During the financial crisis, Mr. Mandis was asked to advise McKinsey on strategic, business process, risk and organizational issues facing financial institutions and related regulatory authorities throughout the world. Previously, Mr. Mandis had worked at Goldman Sachs in a variety of departments. Mr. Mandis helped build the Special Situations Proprietary Trading Group (SSG) within the Fixed Income, Commodities and Currencies Division at Goldman Sachs. In addition, Mr. Mandis was the business unit manager for the global M&A department. Mr. Mandis left Goldman Sachs to co-start a global alternative asset management company that he helped grow to in excess of $12 billion dollars of assets under management.
About Howard Wietschner: Howard Wietschner is a private investor and retired partner from Goldman Sachs. Mr. Wietschner joined the firm in 1994. In his 18 years of service at Goldman Sachs, Mr. Wietschner helped form Goldman Sach's Hedge Fund Industry Group (HFIG) serving as head of HFIG which is responsible for strategic and advisory services for alternative asset managers and was named managing director in 2000 and partner in 2002. Mr, Wietschner also served as co-head of the US convertibles desk and ran relative value sales and trading in 2000. He retired from Goldman Sachs in 2012. Prior to his tenure at Goldman Sachs, Mr. Wietschner practiced law for three years at the firm of Weil, Gotshal & Manges. Active in many civic duties, Howard Wietschner serves as a board member of RIETS at Yeshiva University.
CONTACT: Jeremy Brown, 240-514-2002, [email protected]