Five Arrows Capital Partners (FACP) completed an equity recapitalization of Averhealth, a leading provider of substance use disorder (SUD) treatment monitoring, care management and related support services. The company predominantly assists individuals on behalf of criminal justice systems and judicial treatment programs. FACP has partnered with Averhealth’s executive team to provide access to capital and strategic oversight focused on improving patient outcomes by enhancing the services and capabilities offered by the company.
Over the past 25 years, Averhealth has specialized in providing service and technology-enabled solutions that improve substance use disorder treatment and supervision. Through the creation of forward-facing solutions and the delivery of exemplary services, Averhealth is recognized as an industry authority among treatment courts, probation departments, and treatment providers. This partnership allows Averhealth to both continue to provide the quality of service and innovative technology needed to help people overcome substance use as well as the ability to support its infrastructure at a more accelerated pace.
“Five Arrows Capital Partners is the ideal partner for the next chapter of our growth. During initial conversations with the FACP team, we immediately recognized a common mission of helping people in need and knew that their extensive experience investing in behavioral health would help to progress the services provided by Averhealth,” stated Jason Herzog, CEO of Averhealth.
Ari Benacerraf, a founding Partner of FACP said, “Averhealth has developed a highly differentiated technology-led model that provides mission-critical services to substance use treatment, monitoring, adherence, and testing programs. We are delighted to be working with Jason, Jeff, and their team to continue to build the Company’s full, end-to-end outsourced solution beyond the 1,800 customers they currently address.”
“We are excited to enter into this partnership with Averhealth’s management team as they expand the company’s national footprint and service offerings. The investment in Averhealth is consistent with our goal to support the delivery of high-quality, value-based solutions to providers serving individuals in need of behavioral health and substance use treatment services. We hope that this partnership will allow Averhealth to position itself as the provider of choice for substance use monitoring services as we invest to further support our customers’ needs,” added Michael Langer, Managing Director of FACP.
Averhealth was represented in the transaction by David Keys, Managing Director, and Sean Bielawski, Vice President, of BB&T Capital Markets with Geoffrey Cockrell, Attorney, and Alyssa Campbell, Associate, of McGuire Woods providing legal advice. FACP was advised by James Epstein, Joseph Kadlec and James Hipolit of Pepper Hamilton.
About Averhealth
For nearly 25 years, Averhealth has specialized in providing substance use monitoring services tailored to the unique needs of judicial programs that operate at the holistic intersection of justice-involved and behavioral health. Today, Averhealth serves more than 1,800 courts and probation services across 26 states. Averhealth integrates all substance use monitoring activities, including random selection, client notification, sample collection, laboratory analysis, results reporting, and all steps in between. Averhealth services are centered on APPA, NADCP, and ASAM evidenced-based practices proven to help clients develop coping and refusal skills to new substance use. For more information, please visit: http://www.averhealth.com.
About Five Arrows Capital Partners
Five Arrows Capital Partners is the North American corporate private equity arm of Rothschild & Co’s Merchant Banking business, managing over $12 billion of assets with offices in London, Paris, Luxembourg, New York and Los Angeles. Like its European corporate private equity business, Five Arrows Capital Partners is focused on investing in middle-market companies with highly defensible market positions; strong management teams; business models with high revenue and earnings visibility; and multiple operational levers that can be used to unlock latent value. FACP’s sector focus is limited to healthcare, business services, data and software, and technology-enabled services. For more information, please visit https://www.rothschildandco.com/en/merchant-banking/corporate-private-equity/facp/.
