CIT Healthcare Finance served as joint lead arranger, joint bookrunner and administrative agent for a $118 million senior secured credit facility for Wellspring Capital Management, LLC, a leading middle-market private equity firm. The financing supports Wellspring’s acquisition of AdvoServ, a nationally recognized operator of residential group homes and related education programs for the treatment of individuals with acute intellectual and developmental disabilities and severe behavioral challenges. Financing was provided by CIT Bank, N.A., the principal bank subsidiary of CIT. Terms of the transaction were not disclosed.
Alexander E. Carles, a Managing Partner of Wellspring, said, “We knew CIT had the deep financial and industry knowledge necessary to successfully arrange a large financing in the healthcare sector. CIT previously served as a Joint Lead Arranger for our strategic investment in Great Lakes Caring, an independent provider of home health and hospice services, so we had great confidence in CIT’s execution abilities. This acquisition further expands our presence in the healthcare sector and will allow us to support AdvoServ as they pursue their strategic objectives.”
Kelly McCrann, Chief Executive Officer of AdvoServ, added, “AdvoServ has 46 years of clinical experience, focused on serving individuals with the most challenging needs with scientifically proven behavioral treatments. We provide a strong value proposition to the states in which we operate, as our services optimize quality of life for individuals and their families. Our acquisition by Wellspring, made possible by the financing provided by CIT, will enable us to provide our much-needed services to additional clients.”
David Gibbs, Managing Director, CIT Healthcare Finance, said, “Increased activity in the behavioral health sector promises to create new opportunities for providers that demonstrate clinical excellence, such as AdvoServ. This transaction brings together Wellspring’s resources and expertise with AdvoServe’s strong position in key markets and diversified network of referral sources.”
William Douglass, Group Head and Managing Director, CIT Healthcare Finance, said, “The rapidly-changing healthcare sector offers strong growth prospects to equity sponsors and companies who join with an experienced financial partner to capture the upside in this market. We are pleased to deepen our relationship with Wellspring and look forward to working with them to continue to build out AdvoServ’s leading behavioral health platform.”
During its 46-year history, AdvoServ has established a strong reputation within the specialist behavioral healthcare sector as a leading operator of residential group homes and related education programs for the treatment of individuals with acute intellectual and developmental disabilities and severe behavioral challenges. AdvoServ is highly regarded for its state-of-the-art behavioral treatment techniques, which use advanced data analysis and highly individualized programs.
Wellspring Capital Management, founded in 1995, is a leading middle-market private equity firm that manages more than $3 billion of private equity capital. The firm’s objective is to bring partnership, experience and value creation to each investment. By teaming up with strong management, Wellspring is able to unlock underlying value and pursue new growth opportunities through strategic initiatives, operating improvements and add-on acquisitions. The firm functions as a strategic rather than tactical partner, providing management teams with top-line support, M&A experience and financial expertise, and access to resources.