DALLAS & NASHVILLE, Tenn.–(BUSINESS WIRE)–Pharos Capital Group, LLC (“Pharos”), a private equity firm based in Dallas and Nashville, announced that it has partnered with Founder Ken Ratzlaff and his family by making an investment in Beacon Specialized Living Services, Inc. and its affiliates (“Beacon” or the “Company”). Beacon is the largest for-profit provider of residential healthcare services in Michigan to individuals with intellectual and developmental disabilities, mental health and substance abuse disorders. Terms of the transaction were not disclosed.
“I am delighted to be partnering with Pharos. Their capital resources and experience in the field of behavioral health, along with Darren’s strong executive experience, will be instrumental as we grow our company and expand the care we offer to Michigan’s communities.”
As part of the transaction, industry veteran Darren Hodgdon is joining Beacon as CEO and Mr. Ratzlaff will take on the roles of Director and President. Mr. Hodgdon is a seasoned healthcare executive who recently led strategy and clinical innovation at UnitedHealthcare Community & State, the country’s largest Medicaid insurer, with over five million members in 26 states. Previously, he was Chief Operating Officer of UnitedHealthcare Tennessee, and earlier in his career, he was a senior executive at Healthways, the largest independent global provider of well-being improvement solutions.
Joining Mr. Ratzlaff and Mr. Hodgdon on the board from Pharos will be Partner Jim Phillips, Principal Anna Kovalkova, and Vice President Ryan Shelton.
Mr. Phillips said, “We are pleased to invest alongside Ken and his family in this rapidly growing segment of the healthcare space. Beacon has become a leading provider of behavioral healthcare services in the state of Michigan and we are delighted to work with Ken, Darren and other members of the Beacon team to make those vital services available to an even larger population.”
Mr. Ratzlaff added, “I am delighted to be partnering with Pharos. Their capital resources and experience in the field of behavioral health, along with Darren’s strong executive experience, will be instrumental as we grow our company and expand the care we offer to Michigan’s communities.”
Mr. Hodgdon noted, “Joining Beacon is a natural extension of my previous work developing and implementing programs to improve access and the quality of healthcare services for individuals with complex needs. The availability of housing for these populations as well as qualified and compassionate people to support them are scarce resources and a challenge to find. Beacon provides both and an opportunity for us to scale and fill a critical gap in the current healthcare system.”
Avondale Partners served as exclusive financial advisor to Beacon.
This article originally appeared in an article on BusinessWire.