NEW YORK–(BUSINESS WIRE)–Private investment firms Veronis Suhler Stevenson (“VSS”) and NewSpring Health Capital, NewSpring’s dedicated healthcare strategy, today announced the completion of an investment in BRC Recovery Family of Programs (“BRC” or “the Company”), a nationally-recognized provider of addiction treatment services, and the formation of BRC Healthcare. The new entity serves as the holding company for the BRC Recovery Family of Programs and future acquisitions. Financial terms of the private transaction were not disclosed.
“We’re thrilled to work with VSS to bring operational expertise to BRC and make additional investments in transformative healthcare companies.”
Headquartered in Austin, Texas, BRC provides individualized, gender specific treatments to adults (aged 17+) with substance use disorders such as alcoholism, drug dependence and other addiction disorders. Founded in 2006, the Company offers the full continuum of care from detox and intensive outpatient services to residential treatment to sober living, through its four high-quality clinical programs – BRC Recovery, Spearhead Lodge, Makana Path and Segue Recovery.
“BRC has an excellent reputation for its outstanding treatment programs, talented staff and its ability to generate consistently positive patient outcomes. Together with NewSpring, we look forward to empowering BRC with the resources it needs to advance its high-quality continuum of care and pursue potential acquisitions of complementary programs in communities where demand for established behavioral health programs continues to grow,” said Jeffrey Stevenson, Managing Partner of VSS, a private investment firm that invests in the healthcare, information, business services and education industries.
“We’re excited to build upon the successful legacy of leadership Marsha Stone and her talented staff have shown at BRC, demonstrating an unwavering commitment to providing high-quality clinical care and innovating addiction treatment and therapeutic programs that ensure patients stay healthy, focused and moving forward on their journey to recovery and sober living,” said Drew Rothermel, Chief Executive Officer of BRC.
“At NewSpring, we’re always looking to invest in healthcare companies that bring innovative ideas and ways of thinking to markets in need of new solutions. This is exactly what BRC is doing in the addiction treatment and therapeutics space,” said Kapila Ratnam, PhD, Partner at NewSpring, a leading provider of private equity capital managing over $2 billion across four distinct strategies. “We’re thrilled to work with VSS to bring operational expertise to BRC and make additional investments in transformative healthcare companies.”
“It’s amazing what we’ve been able to accomplish by staying rooted in our principles and aggressively addressing the needs of the market. I’m grateful to have a top-notch team and the opportunity to build a new platform that fuels our continued growth and ability to serve more people,” said Marsha Stone, Founder of BRC. Ms. Stone will remain at BRC and continue to serve as its Chief Strategy Officer.
According to the National Alliance of Mental Illness as well as other industry reports, the mental health services market is expected to grow at a compound annual growth rate of 4.6 percent throughout 2020, with the U.S. market for inpatient treatment expected to total more than $5 billion. There are approximately 44 million adults who experience mental illness in the U.S. in any given year.
VSS has strong experience investing in and supporting the growth of healthcare companies, including Ascent Behavioral Health, which operates six unique residential programs in Utah that deliver behavioral health treatment for adolescents; Caravan Health, a provider of value-based care advisory services to hospitals and physician practices; and Endo1 Partners, an endodontic partnership organization providing comprehensive business and operational support services to endodontics practices.
NewSpring has a 20-year history of growing, developing, and investing in middle-market companies that improve the delivery of healthcare or bend the cost curve of the healthcare industry. Within the behavioral health market specifically, NewSpring has made investments in SUN Behavioral Health, Community Education Centers (CEC), and Habit Management, each with their own unique specializations, but all associated with patients requiring treatment for substance abuse. With this significant sector experience, the NewSpring Health team is well-positioned to add value to the BRC management team as they grow their business.
This article originally appeared in an article in BusinessWire.