Cressey exits behavioral-health company InnerChange

  • Cressey acquired majority stake in December 2011
  • InnerChange: 7 residential treatment programs
  • PE firm closed Fund VI at $950 mln in June

Cressey & Co has exited its investment InnerChange, a provider of residential mental-health treatment, Buyouts has learned.

While the firm has not formally announced the transaction, the Chicago private equity firm no longer lists InnerChange as “current partnership” on its website.

Sources said SunTrust was advising the behavioral-health company on a sales process earlier this year, placing Ebitda at around $8 million.

One source familiar with the matter said the buyer was Calo Programs, the behavioral-health platform Housatonic Partners backed in 2016.

Calo on its website lists Alex Stavros as CEO, as does InnerChange.

Housatonic, with offices in Boston and San Francisco, lists Managing Director Joe Niehaus as an associated investment team member, as it relates to Calo.

Cressey’s investment in InnerChange dates to December 2011. The company at the time said it had received a growth investment that left the PE firm with a majority ownership position.

Based in Orem, Utah, InnerChange operates seven gender-specific long-term residential-treatment programs and one community-based outpatient-treatment program.

Programs range from dialectical behavioral therapy to treat females with depression, addictions and eating disorders to family-support programs offered “in the moment” when family issues or crises arise. It offers the programs in Utah, Texas, Montana, North Carolina and California.

In brewing behavioral-health activity, Nautic PartnersOdyssey Behavioral Health is exploring a sale via Moelis, Buyouts reported in July.

Frontenac-backed opioid-treatment-network Behavioral Health Group is also in the market. The company is being advised by Piper Jaffray, Buyouts reported.

Cressey, for its part, raised just south of $1 billion for its sixth healthcare fund in June. Partner Bryan Cressey told Buyouts at the time that the firm expected to make an initial investment out of Fund VI “in the first six months.”

Also in June, Cressey and Harvest Partners wrapped up their sales process for veterinary-hospital-network VetCor.

Oak Hill Capital Partners claimed victory in the Jefferies-run process in a deal anticipated to produce a valuation north of $1.5 billion. Cressey and Harvest reinvested alongside Oak Hill.

Representatives of Cressey and SunTrust declined comment, while those with Housatonic couldn’t immediately be reached.

Action Item: Reach out to Housatonic’s Joe Niehaus at