Hunter Street Partners and Healy Capital Partners have invested in Ark Behavioral Health, an owner and operator of substance use disorder treatment facilities in the Northeastern U.S. No financial terms were disclosed.
MINNEAPOLIS, July 20, 2020 /PRNewswire/ — Hunter Street Partners (“Hunter Street”), a Minneapolis-based alternative investment management firm, is pleased to announce it has partnered with Healy Capital Partners to invest in Ark Behavioral Health (“ARK”), an owner and operator of substance use disorder (SUD) treatment facilities in the Northeastern U.S. The investment will assist in expanding ARK’s footprint, bringing SUD and mental health guidance and care to a growing and underserved market of individuals and family members who struggle with addiction. ARK marks the second partnership Hunter Street has made in the behavioral health space following its investment in BridgesMN, one of Minnesota’s leading providers of services and housing options to individuals with intellectual development disabilities.
With four specialized treatment facilities ARK provides personalized guidance and treatment for individuals and families struggling with drug or alcohol addiction. ARK offers help for individuals and families at any stage of recovery through its detox (launching in August 2020), inpatient, partial hospitalization, intensive supervised outpatient, and outpatient programs with the goal of helping people return to everyday life.
“Substance abuse is an issue that affects millions of families across the U.S., and we are proud to partner with the experienced and dedicated management team at ARK to help them broaden their reach in a significantly underserved market,” said Neal Johnson, CEO and CIO of Hunter Street. “Spending on substance use disorder treatment is expected to reach $42 billion in 2020, yet many treatment centers have little or no space for new patients and often have to turn people away. Our plan is to help change that.”
“The investment in ARK fits squarely within our targeted criteria and is an extension of our focus on the behavioral health space where we see imbalances in supply and demand and a low correlation to the overall economy,” added Andrew Platt, Partner at Hunter Street. “Having known and worked with Mike Healy for nearly two decades, I am excited to partner with Healy Capital on this investment as the firm brings significant experience in the healthcare field as well as governance expertise.”
“We are very pleased to partner with Hunter Street to provide a flexible capital solution for ARK that allows them to continue expanding and bringing first-rate personalized care to a community in need,” said Michael Healy, CEO of Healy Capital Partners. Mr. Healy adds significant value to ARK given his extensive background in the behavioral health space, including serving on the board of eating disorder treatment provider The Emily Program.
“We’re thrilled to be partnering with Hunter Street and Healy Capital,” said Rich McDonald, CEO at ARK. “Their support and capital enable us to expand our number of treatment centers while continuing to provide high-quality care to underserved people suffering from substance use disorder.”
About Hunter Street Partners
Hunter Street Partners is a Minneapolis-based alternative investment management firm that provides capital solutions to operating partner teams and lower middle market companies across corporate finance, real estate, and specialty finance. The firm is focused on fundamentals-driven, asset-oriented credit and equity opportunities. Learn more about Hunter Street Partners at www.hunterst.com.
About Healy Capital
Healy Capital Partners is a Minneapolis-based private investment firm based focused on partnering with closely held and family-owned companies, where we can be a value-added investor. We seek out investments in lower middle market companies in which we can establish a truly collaborative partnership with all constituents to accelerate growth. The firm partners with Founders and management teams to build sustainable value in businesses over the long-term, without the artificial constraints fundraising cycles create for more traditional private equity funds. Learn more about Healy Capital Partners at www.healy-capital.com.
About ARK Behavioral Health
ARK Behavioral Health is a network of Drug and Alcohol Addiction Treatment Facilities that provide a variety of levels of care to those who are prepared to begin their journey toward recovery. Learn more about ARK Behavioral Health at https://arkbh.com/.