Vestar Capital Partners has made a majority equity investment in Veritas Collaborative, a specialty hospital system for the treatment of eating disorders.
Veritas Collaborative specializes in the care of children and adolescents with severe eating disorders. Services are provided through inpatient, sub-acute inpatient/acute residential, partial hospitalization, and intensive outpatient levels of care. The company was founded in 2010 and is headquartered in Durham, NC (www.veritascollaborative.com).
The management team at Veritas is led by its founders Stacie McEntyre, Chase Bannister, and Jeff Clark. “With Vestar as our partner, we have the opportunity to drive a new standard of care in the eating disorders field, and become one of the leading eating disorders hospital systems in the world,” said Mr. Clark.
The majority of Vestar’s initial investment in Veritas will be directed toward growth opportunities. “There is a large, unmet demand for the services and treatments offered by Veritas,” said Andrew Cavanna, Managing Director and Co-Head of Vestar’s Healthcare Group. “We are looking forward to working with Veritas to expand its operations and bring its highly successful approach to more patients and more geographies.”
Vestar specializes in management buyouts and growth capital investments. The firm targets equity investments in the range of $50 million to $150 million in US-based middle-market companies with enterprise values ranging from $250 million to $1 billion. Sectors of interest include consumer; diversified industries; healthcare; and financial services. Since the firm’s founding in 1988, Vestar has completed more than 70 investments in companies with a total value of more than $40 billion. Vestar has offices in New York, Boston, and Denver (www.vestarcapital.com).
“The Veritas team has a unique, powerful combination of clinical expertise and business acumen,” said James Elrod, Jr., Managing Director of Vestar Capital Partners. “We have been impressed with the commitment of its team to delivering innovative, world-class care and the outstanding results they have produced to date. We believe in the Veritas mission and we are fully committed to support the growth of this enterprise for years to come.”
Avondale Partners (www.avondalepartnersllc.com) was the financial advisor to Veritas Collaborative.
© 2015 PEPD • Private Equity’s Leading News Magazine • 8-4-15
