MinSec Holdings Inc., a Wallingford, Penn.-based operator of community correctional facilities, outpatient programs and behavioral health treatment facilities, has raised an undisclosed amount of private equity and subordinated debt funding from Camden Partners and NewSpring Capital. The deal is structured as a recapitalization.
NewSpring Capital, a family of private equity funds providing growth and expansion capital to the Mid-Atlantic region, announced today that NewSpring Health Capital and NewSpring Mezzanine Capital, along with Camden Partners have provided a combination of equity and subordinated debt financing to MinSec Holdings, Inc., in Wallingford, Pennsylvania. The proceeds of the transaction will be used to recapitalize the balance sheet and provide working capital for future growth of the company.
Founded in 1995, MinSec is a privately held company that operates Community Corrections Facilities, Behavioral Health Treatment Centers and Outpatient Programs for the treatment of chemical dependency and mental health disorders. The senior management team is led by Sean McDougall, Co-founder and Chief Executive Officer, who has over 15 years of experience in the community correctional industry. The Company currently operates eight residential facilities located throughout the Commonwealth of Pennsylvania, with a total design capacity of 1,009 beds, making MinSec the largest community correctional provider in Pennsylvania. Additionally, the Company operates three outpatient facilities in the Commonwealth as well. MinSec’s principal clients are Federal, State, County and local government agencies responsible for adult corrections, treatment and educational services. The Company has received accreditations from the American Correctional Association and licensure from the Bureau of Drug and Alcohol Programs and Pennsylvania Department of Health.
“We have continued to be impressed with the vital role MinSec plays in the behavioral rehabilitation sector of the corrections market,” said Brian Murphy, NewSpring General Partner. Brian will join Christopher Kersey from Camden Partners on the MinSec Board of Directors post financing. “We believe that with this financing, Sean McDougall (CEO) and MinSec can continue to expand their important work both with and outside of the Commonwealth of Pennsylvania.”
“The MinSec management team welcomes our new partners in NewSpring Capital and Camden Partners, and with their support we have exciting plans to expand and extend our services to meet the complex demands of today’s corrections environment,” said Sean McDougall, CEO of MinSec.
MinSec Holdings Inc., a private company, incorporated in Delaware and headquartered in Wallingford, Pennsylvania, was founded in 1995 by a father and son team John McDougall and Sean McDougall. The Company primarily operates Community Corrections Facilities, Behavioral Health Treatment Centers, and Outpatient Programs for the treatment of chemical dependency and mental health disorders. Through its residential programs, inmates receive individual assessment and rehabilitation services along with appropriate counseling, chemical dependency treatment, educational and vocational assessment and mental health and behavioral health management. Outpatient services allow MinSec to provide the full continuum of care with treatment for substance abuse that includes special emphasis on related criminal behaviors and relapse prevention. MinSec’s residents are typically adult males serving the last three to six months of their sentence and who are preparing for re-entry into society at large. MinSec’s outpatient population consists primarily of offenders released on probation or parole. To learn more about MinSec Holdings, Inc., please visit the company’s website at www.minsec.com.
About NewSpring Capital
NewSpring Capital, based in Radnor, PA, Short Hills, NJ and Washington, D.C., is a leading provider of private equity capital focused in the Mid-Atlantic region. NewSpring Capital currently has over $500 million of assets under management. The family of funds consists of: (i) NewSpring Growth, which provides equity capital to growth and expansion stage companies with a focus on business services, enabling technology and information technology; (ii) NewSpring Healthcare which provides equity capital to healthcare companies within the life sciences, healthcare services and medical device sectors; and (iii) NewSpring Mezzanine, which provides mezzanine capital for expansion stage and buyout opportunities in the business services, healthcare, information technology, and specialty manufacturing sectors. NewSpring Capital partners with entrepreneurs, leveraging its capital and experience, to assist them in turning their visions into reality. To learn more about NewSpring Capital, please visit www.newspringcapital.com.