Carlyle takes majority stake in Knack and Equalize to build AI-native RCM platform

Carlyle has acquired a majority stake in Knack RCM and EqualizeRCM, merging the two AI-driven revenue cycle management players into a multi-specialty global platform serving physician groups, rural hospitals, and specialty care segments. Financial terms were not disclosed.

Carlyle, a global investment firm, has acquired a majority stake in Knack RCM and EqualizeRCM, two US-based healthcare revenue cycle management (RCM) providers, according to official disclosures. The investment is backed by Carlyle Asia Partners VI and Carlyle Asia Partners Growth II. Founders Rajiv Sharma and Nagi Rao will retain minority stakes through reinvestment and remain involved.

Knack RCM operates a global delivery network across the United States, India, and the Philippines with its proprietary orchestration platform, Workmate. EqualizeRCM contributes AI-driven capabilities, including denial prediction tools built on large language models and agentic AI systems.

This development matters because the combined entity aims to deliver end-to-end RCM solutions to physician groups, rural hospitals, durable medical equipment providers, and specialty segments including anesthesia, behavioral health, eyecare, and urgent care. Equalize has demonstrated market traction, including replacing larger incumbent vendors in key contracts.

Carlyle partner Kapil Modi noted that Knack and Equalize’s AI-native, outcomes-driven approach aligns with evolving market needs. Industries impacted include healthcare administrative services, medical billing, and AI-enabled health IT.

Stakeholders include hospitals, specialty practices, and RCM competitors.

For investors, the merger signals consolidation in the fragmented RCM sector, with AI capabilities as a key differentiator. Success will depend on integrating two platforms while maintaining client retention and achieving cross-selling synergies across provider segments.

Carlyle is a global alternative asset management firm headquartered in Washington, D.C.

Knack RCM and EqualizeRCM are US-based healthcare revenue cycle management companies offering AI-enhanced billing and claims management solutions.