Chicago Growth Partners has led the recapitalization of Specialized Education Services, (“SESI”) a provider of non-public, for-profit educational services for children with learning and behavioral difficulties in the K-12 market. Also investing Specialized Education Services were Prairie Capital, Twin Bridge Capital Partners and the company’s management team.
Proceeds from the transaction were used to refinance the company’s existing debt and pay a dividend to shareholders. The recapitalization was funded with excess cash from the company’s balance sheet and third party debt facilities that were structured to expand the capital available to support SESI’s growth plans. The company plans to extend its reach to new states and more students by opening new schools, acquiring existing non-public schools and partnering with more districts to manage special education and alternative education programs.
Specialized Education Services provides specialized education services in the K-12 market for children and youth facing learning, language, behavior and social challenges. The company serves over 3,000 students in several states, including Connecticut, Delaware, Maryland, Pennsylvania, Washington D.C., Illinois and California. The company is based in Yardley, PA (www.sesi-schools.com).
Chicago Growth Partners invests from $15 million to $75 million of equity in companies with revenues from $15 million to $150 million. The firm targets three primary sectors: education; business and consumer services; healthcare products and services; and industrial growth. CGP is currently investing its second fund, Chicago Growth Partners II with $500 million of capital commitments. The firm is based in Chicago, IL (www.cgp.com).
