SpendMend Secures Major Private Equity Backing as Morgan Stanley Capital Partners Takes Controlling Stake

The healthcare cost optimization sector has attracted significant institutional attention, with Morgan Stanley Capital Partners (“MSCP”) completing its acquisition of a controlling interest in SpendMend, the Grand Rapids-based healthcare technology platform. The deal structure retains both the existing management team and Sheridan Capital Partners’ minority position, creating a stable foundation for continued growth.

Market Leadership in Healthcare Cost Management

SpendMend has emerged as a dominant player in healthcare financial optimization, commanding relationships with more than one-third of America’s top 100 health systems. The platform specializes in identifying and recovering financial leakage through advanced contract analysis and payment error detection—a critical capability as healthcare organizations increasingly scrutinize operational expenses. The company’s approach to profit recovery utilizes proprietary technology to automate what was historically a manual, labor-intensive process.

Growth Through M&A and Organic Expansion

Under the leadership of CEO Dan Geelhoed and President Rob Heminger, SpendMend has executed four strategic acquisitions since 2017, expanding its service offerings and market reach. This disciplined growth strategy, combined with strong organic performance, positions the company as one of the sector’s fastest-growing platforms. The management continuity provided by both leaders remaining in their roles signals confidence in SpendMend’s current trajectory.

Strategic Rationale Behind MSCP’s Investment

Morgan Stanley Capital Partners identified cost containment within healthcare as a structural opportunity four years ago, systematically evaluating multiple platforms in this space. The firm’s healthcare focus—led by Managing Director Steve Rodgers—targets businesses delivering outsourced services that address systemic inefficiencies. SpendMend exemplifies this thesis: a scalable technology platform addressing a persistent industry challenge with proven customer retention and expansion potential.

Capital Partnership Structure

The transaction maintains meaningful equity stakes for both existing stakeholders and the broader employee base, aligning incentives across the organization. MSCP’s involvement brings the resources and operational expertise of a major institutional investor, while preserving the entrepreneurial culture that has defined SpendMend’s growth. This hybrid ownership structure has become standard in healthcare technology deals, balancing founder autonomy with institutional capital.

Broader Context

Morgan Stanley Capital Partners operates within Morgan Stanley Investment Management, which oversees $1.6 trillion in assets across a global network spanning 41 countries. The firm’s three-decade track record in middle-market private equity spans business services, consumer, healthcare, education, and industrial sectors. SpendMend represents the firm’s continued conviction in healthcare-enabled technology platforms addressing operational inefficiencies at scale.