Pharos Capital Group has acquired telepsychiatry services provider FasPsych. The acquisition was completed in partnership with the company’s founder, Ed Irby, and other members of the senior management team who will own a significant equity stake in the company alongside Pharos.
FasPsych manages a pool of contracted psychiatrists and psychiatric nurse practitioners from across the country to provide telepsychiatry services via real-time, interactive televideo communication. FasPsych services include psychiatric evaluation and consultation, medication management, on-call services and remote medical director functions. The company’s services are primarily provided in the Southwest US to hospitals, community mental health centers, residential mental health centers and other mental health facilities. Many of the company’s customers struggle with recruiting and maintaining their own healthcare providers. FasPsych was founded in 2007 and is headquartered in Scottsdale, AZ (www.faspsych.com).
“Pharos has been impressed with the FasPsych management team’s ability to drive consistent growth and strong operating profitability at the company, while simultaneously building a reputation for quality service centered around affordable care and respect for the patient,” said Jim Phillips, Partner at Pharos Capital.
Under Pharos Capital ownership, FasPsych intends to recruit new clinicians, expand into new geographies, and further penetrate existing markets to drive growth and profitability. “The company’s expansion plans include moving into new territories, aggressive recruitment to increase the number of clinicians to meet growing demand, and extending services to numerous end-user adjacencies,” said Mr. Irby.
FasPsych currently provides approximately 11,000 telepsychiatry visits per month and has approximately 50 psychiatrists and psychiatric APRNs (advanced practice registered nurse) providing services.
“Pharos shares our vision of improving access to mental health services, and their operations expertise and financial resources will be invaluable as we aim to broaden our reach to both patients and providers,” said Abraham Barton, FasPsych’s CEO.
Pharos Capital Group invests from $25 million to $50 million in companies seeking later stage funding for internal growth, acquisitions, management buyouts or recapitalizations. The firm invests across many sectors but has a particular interest in healthcare and business services. Pharos has offices in Dallas and Nashville (www.pharosfunds.com).
The buy of FasPsych is the sixth portfolio investment in Pharos Fund III. The other five companies are: Seaside Healthcare, a behavioral health services provider, acquired in January 2014; Employee Benefit Solutions, a provider of healthcare cost containment and wellness programs, acquired in May 2014; Motion PT, a provider of physical therapy and occupational therapy, acquired in June 2015; Dermatology and MedSpa, a provider of medical/surgical and cosmetic dermatology services, acquired in January 2016; and Beacon Specialized Living Services, a provider of residential healthcare services to individuals with intellectual and developmental disabilities, acquired in May 2016.
Mulkey & Company (www.mulkeycpas.com) was the financial advisor to FasPsych and Kaufman & Canoles (www.kaufmanandcanoles.com) was the company’s legal advisor.
© 2016 Private Equity Professional • 8-11-16
