LLCP's Monte Nido readies sale, Vistria makes more than 4x its money on Agape Care

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The Wire

Oct. 20, 2021

Levine Leichtman taps bank for 2022 sale of eating disorder platform, Vistria reaps more than 4x on Agape Care, Genstar and GI recap Daxko

It’s hump day, hubsters!

If you're already planning for next year, here's another behavioral health deal coming down the pike you should keep tabs on. Six years into its investment in the eating disorder treatment platform, Levine Leichtman Capital Partners is gearing up for a sale of Monte Nido. Harris Williams is engaged for sell-side financial advice, with a process poised to start in 2022. Sources placed the company’s EBITDA at approximately $50 million. The upcoming process follows Apax Partners and Oak HC/FT's joint acquisition of ERC earlier this month, which valued the Denver-based eating disorder platform at $1.4 billion.

Exit: The Vistria Group exited a second hospice care investment in just over a year. This time around, it made more than 4x its money on Agape Care, whose end-of-life care is focused in South Carolina and Georgia, according to a source with knowledge of the matter. Vistria knows hospice care well, having now chosen pockets of the country and formed market positions on three separate occasions. Its playbook has centered on regional density with the ability to control clinical outcomes versus a nationally dispersed model, and that has seemingly worked well. Read more on PE Hub.

Fitness-payments: On the heels of Mindbody’s acquisition of ClassPass, another pair of firms are looking to capture the growth (and rebound) of the fitness club industry. Genstar Capital and GI Partners recapitalized Daxko, which provides membership management software and integrated payment solutions to member-based health and wellness organizations. That includes large health clubs, boutique fitness studios, YMCAs, and JCCs. Read PE Hub’s brief on the deal.

That’s it for me! Have a great rest of your week. Hit me up with feedback, tips n’ gossip or anything else at springle@buyoutsinsider.com.

Read the full wire commentary on PE Hub...

Also of note (may require subscriptions)

Weighing in: WSJ Pro writes that U.S. lawmakers this week will subject the private-equity industry to fresh scrutiny over its practices, and some members of Congress plan to revive a bill to increase federal regulation of buyout firms. A group of lawmakers led by Sen. Elizabeth Warren (D., Mass.) plans this week to reintroduce a modified version of the Stop Wall Street Looting Act, a two-year-old proposal to rein in the private-equity industry, according to people familiar with the matter. Read more on WSJ.

Allocating: Ventura County Employees’ Retirement Association is on track to hit its goal of 16 percent allocation by 2025 with the overall plan value having increased faster than projected. The pension plan has been steadily adding to its private equity allocation since 2017, when it had just 4 percent to allocated to private equity. Read more on Buyouts.