Charterhouse Sells Camelot System of Care

Charterhouse Group said Monday that its sold the Camelot System of Care to Sequel Youth and Family Services, which is backed by Levine Leichtman Capital Partners. Financial terms weren’t announced. Austin, Texas-based Camelot provides specialized behavioral health services to youth and adolescents with autism and other behavioral problems.


Charterhouse Group, Inc. (“Charterhouse”), a New York-based private equity firm, announced today that it has completed the sale of the System of Care Division (“Camelot System of Care”) of Camelot to Sequel Youth and Family Services, LLC. Camelot System of Care provides specialized behavioral health services to youth and adolescents with autism and other complex behavioral problems in residential treatment facilities and community-based programs.
Charterhouse’s partnership with Camelot’s management team, led by Chief Executive Officer John Harcourt, began with an introduction by a Charterhouse Healthcare Services Entrepreneur in early 2006.  Since Charterhouse’s platform investment, the Company has generated more than a three-fold increase in revenue and EBITDA through expanding census within existing facilities, launching three de novo facilities and completing six small add-on acquisitions.
C. Taylor Cole, Jr., Managing Director at Charterhouse, said, “We are proud to have supported the Company through such an exciting period of growth that has established Camelot as a leading provider of behavioral health services to at-risk youths. It has been a pleasure to work closely with John and his team to bring our collective strategy to a very successful outcome.”
John Harcourt, Camelot’s CEO, said, “The strategic and financial support of the Charterhouse team over the past five years has enabled us to realize our vision.  Together, we have created a leader in the industry, made a significant difference in the lives of thousands of children suffering from autism and other behavioral problems, and realized a highly successful investment vision.”
This sale transaction follows the previously-announced January 2011 sale of Camelot’s Education Services Division and represents a full realization of Charterhouse’s investment in Camelot.  Thomas C. Dircks, Managing Partner at Charterhouse, said, “Camelot represents another example of our time-tested strategy of partnering with Charterhouse Entrepreneurs to identify and invest in platform growth companies and executing well-defined, buy-and-build strategies.  We thank John and his entire management team for executing well on our shared vision and we wish them continued success in the future.”
The Company was advised on the transaction by Cain Brothers & Company, LLC and Proskauer Rose LLP.

About Camelot
Camelot System of Care is a leading provider of behavioral health services to at-risk and special needs youth and adolescents. The Company operates residential treatment facilities and outpatient clinics for youth and adolescents with emotional and behavioral disorders. Camelot’s Education Services Division, purchased by The Riverside Company in January 2011, operates therapeutic day schools and contracts with public school districts to manage specialized educational programs for at-risk youth, including remedial discipline schools and academic programs for over-aged students.  Camelot is headquartered in Austin, Texas.

About Charterhouse Group
Charterhouse Group, Inc. is a private equity firm with almost four decades of experience in working with Entrepreneurs and building leading middle-market companies. Established in 1973, Charterhouse has invested in excess of $2.0 billion in equity and established over 100 platform companies with a focus in the Healthcare Services, Business Services and Consumer Products and Services sectors. For more information on Charterhouse, please visit