MidCap Financial, a leading commercial finance company focused exclusively on middle market healthcare companies, announced that it served as Syndication Agent in a senior secured credit facility in support of the acquisition of US Community Behavioral by Bregal Partners. MidCap’s Leveraged Loan team provides cash flow-based senior secured financing to support investments made by private equity sponsors in high quality, middle-market companies across the United States.
US Community Behavioral is a provider of community-based residential and behavioral services to adults and children with intellectual and developmental disabilities in the western United States including Idaho, New Mexico, Nevada and California. Bregal Partners has bought US Community as a platform to create a national provider in community-based behavioral health alongside company management. Bregal's cofounder and Managing Partner Robert Bergmann said US Community Behavioral is a targeted buy for the firm, which has been scouting the behavioral health space for over a year.
"There is tremendous shift on the part of states to move patients out of large psychiatric hospitals to smaller residential settings," he said. U.S. Community’s current services include supported living, licensed homes and employment services, as well as autism and other therapy-based behavioral services. The company intends to expand toward the East Coast and add expertise in specializations like traumatic brain injuries through acquisitions.
Bregal Partners is the midmarket buyout unit of Bregal Investments, which itself is owned by Zug, Switzerland-based Cofra Holding AG, a holding company which owns retail, real estate and private equity investments in Europe, North and Latin Americas and Asia. Bregal partners with management teams to build industry leading companies in the middle market. Areas of focus include healthcare services, energy services, consumer products & services, food & beverage, and retail & restaurants. With $500 million in committed capital, Bregal is one of several dedicated funds under the Bregal Investments umbrella, which has invested or committed over $9 billion since 2002.
MidCap Financial, LLC is a commercial finance company focused on middle market lending in the broad national healthcare industry. MidCap specializes in $5 million to $200 million loans.