Levine Leichtman Capital Partners (LLCP) has sold Monte Nido, a provider of eating disorder treatment programs, to Revelstoke Capital Partners. LLCP, through its fifth fund, Levine Leichtman Capital Partners Fund V LP, acquired Monte Nido from Centre Partners in September 2015.
Monte Nido’s service offering covers a full continuum of care including inpatient, residential, partial hospitalization, and intensive outpatient treatment. Monte Nido’s patients are primarily woman between the ages of 14 and 28.
The company goes to market under five brands and operates 45 facilities across 15 states including California, Oregon, Illinois, Massachusetts, Maryland, Pennsylvania, Florida, and New York. Monte Nido, led by CEO Candy Henderson, was founded in 1996 and is headquartered in Miami, Florida.
“Our management team is grateful for LLCP’s partnership and guidance throughout our relationship,” said Ms. Henderson. “As a result of their strategic and financial support, Monte Nido has grown significantly, enabling our company to have a greater impact on the lives of those working toward recovery from eating disorders. LLCP’s management-centric approach has been an important driver of many of our accomplishments, and we are proud to have helped expand access to care to so many patients in need.”
“Our investment in Monte Nido reflects Revelstoke’s continued focus on partnering with industry-leading behavioral healthcare businesses to increase access and improve patient outcomes,” said Michael Constantinides, a principal at Revelstoke. “Monte Nido’s commitment to providing high-quality care has made it a partner of choice for referral sources and payors, and we see strong opportunities to expand their successful treatment model to new regions.”
“We are very proud of what Monte Nido has accomplished since we invested in the company,” said Matthew Rich, a partner at LLCP. “The world-class management team tripled the number of facilities through de novo openings and strategic acquisitions, while never wavering in its commitment to the highest quality treatment and industry-leading clinical outcomes. The business is exceptionally positioned for continued growth, and we wish Candy and the entire management team continued success with their new investor.”
LLCP invests in middle-market companies located in the United States and Europe. Sectors of interest include consumer and branded products, franchises, business services, healthcare, education, engineered products and light manufacturing. In September 2021, LLCP closed its latest fund, LLCP Lower Middle Market Fund III LP, with total capital commitments of $1.38 billion. The new fund was oversubscribed and closed at its increased hard cap.
Denver-based Revelstoke invests from $10 million to $250 million in companies that have at least $5 million of EBITDA. Sectors of interest include healthcare services and healthcare technology. Since founding in 2013, the firm has invested in 25 platform companies and completed 140 add-on acquisitions.
“We are excited to partner with Monte Nido, a high-impact organization that treats individuals suffering from eating disorders,” said Andrew Welch, a partner at Revelstoke. “The increase in demand for eating disorder services continues to accelerate along with our nation’s overall mental healthcare needs. By providing the necessary capital, resources, and expertise, Revelstoke will help accelerate the company’s mission of providing high-quality eating disorder treatments to communities across the nation.”
Harris Williams was the financial advisor to Monte Nido and Raymond James was the financial advisor to Revelstoke.
“Behavioral health continues to be an attractive industry for investors given the persistent unmet demand for services across our country,” said Whit Knier, a managing director at Harris Williams. “There is growing demand for eating disorder treatment due to societal pressures, the negative impact of social media, and other factors, and Monte Nido is uniquely positioned to address this need thanks to its leading clinical outcomes.”
The Harris Williams transaction team was led by Mr. Knier, James Clark, Taylor Will, Cameron Thomas, Jonathan Ferrell and Blake Goodman.
© 2022 Private Equity Professional | September 1, 2022
