Private Equity Still Driving Behavioral Health Deals

Private Equity Still Driving Behavioral Health Deals

As healthcare M&A deal volume drops, particularly in the services sectors, behavioral health targets are still in hot demand, especially for private equity firms. Roughly 18% of deals announced by a PE buyer in the second quarter have targeted companies in the Behavioral Health Care sector, the highest concentration for any of the healthcare sectors. That statistic certainly correlates with the spike in demand for mental health services triggered by the anxiety surrounding COVID-19, as outlined in this article from The Chartis Group, an advisory and analytics services firm focused on the healthcare industry. Additionally, in early March, the U.S Centers for Medicare & Medicaid... Read More »
TPG Invests in LifeStance Health

TPG Invests in LifeStance Health

The need for behavioral health care has only been heightened by the COVID-19 pandemic we are now experiencing. And TPG Capital is moving deeper into the space with its majority investment in LifeStance Health, a leading provider of outpatient behavioral health services. Existing investors Summit Partners and Silversmith Capital Partners remain as minority investors. TPG’s investment is reported to be $1.2 billion, according to PE Hub. Founded in 2017, LifeStance offers a range of outpatient behavioral health services, delivered in-person and through telemedicine. The company focuses on creating and expanding low-cost outpatient access for patients seeking care for behavioral health... Read More »
BRC Recovery Gets Two New PE Owners

BRC Recovery Gets Two New PE Owners

Substance abuse treatment is still attracting investors’ attention, even in the COVID-19 pandemic. In April, BRC Recovery Family of Programs, an addiction services provider, received a joint investment from Veronis Suhler Stevenson (VSS) and NewSpring Health Capital. Terms of the deal were not disclosed. The joint investment creates a new platform for addiction treatment, known as BRC Healthcare. The new entity serves as the holding company for the BRC Recovery Family of Programs and future acquisitions. BRC Healthcare provides individualized, gender-specific treatments to adults aged 17 and over with substance use disorders such as alcoholism, drug dependence, and other addiction... Read More »
Caregiver Expands With Four New Providers

Caregiver Expands With Four New Providers

The spread of Covid-19 has forced most healthcare companies to hit pause on their M&A activity, especially those in the services sectors. Hospitals are overwhelmed and the Centers for Medicare & Medicaid Services issued guidelines that all elective surgeries, non-essential medical, surgical and dental procedures be delayed, which are likely to stifle physician groups’ revenue flow. However, some companies have proved to be resilient in the pandemic. Caregiver Inc., a behavioral healthcare company, is one example. It provides services to adults with intellectual and developmental disabilities (IDD). Since 2015, Caregiver has expanded rapidly, building its network across... Read More »
TPG Invests in LifeStance Health

Blue Sprig Pediatrics Acquires ABA Providers

BlueSprig Pediatrics, with the backing of KKR & Co. (NYSE: KKR), has been an active player in the M&A field. Since BlueSprig was formed in October 2018, it has reported five behavioral health care transactions in three different states, according to our Deal Search Online database. Now it has a foothold in Florida. Last week the company announced its acquisition of Florida Autism Center and Fusion Autism Center for $120 million. Collectively called FAC, the group provides applied behavior analysis (ABA) therapy services treating children with autism spectrum disorder. This partnership will create a top-five national provider and the leading provider in the southern United States.... Read More »
TPG Invests in LifeStance Health

Cimarron Healthcare Enters Behavioral Health Space

Two private equity firms exited an investment and one dove into it. The target, Ascent Behavioral Health, is a portfolio company of Monroe Capital and Veronis Suhler Stevenson. The Salt Lake City-based company provides wilderness therapy, residential treatment and therapeutic boarding school programs for adolescents with mental health issues such as depression, anxiety and attachment disorders. Financial terms were not disclosed. The buyer, Cimarron Healthcare Capital, which is also based in Salt Lake City, focuses on investments in the lower middle market. Its portfolio consists of AMPS (Advanced Medical Pricing Solutions), a healthcare cost management firm; Linen King, which provides... Read More »