Patient Square agrees to buy Summit BHC, Key-person situations crop up

Patient Square agrees to buy Summit BHC.

Happy Thursday, Hubsters!

What have we got in store for you today?

How about some first-timer news: Patient Square Capital, which Wire readers will recognize as ex-KKR healthcare chief Jim Momtazee’s firm, agreed to buy Summit BHC, which provides behavioral health and addiction treatment services, from FFL Partners and Lee Equity.

FFL and Lee Equity partnered to buy the company in 2017, and during their ownership the company made seven add-ons. The company also expanded eight of its facilities and opened five new centers, the firm said. Summit BHC grew more than 200 percent through the firms’ growth initiatives.

“The pandemic has illustrated in many dimensions how important it is to expand access to behavioral health treatment, and we are proud that Summit is leading the way,” Mark Gormley, partner at Lee Equity, said in a statement about the Patient Square deal.

PE Hub editor Sarah Pringle, perhaps the most connected healthcare M&A reporter in the biz, broke the news in July that Summit BHC was for sale in a process run by Moelis and Jefferies. At the time, Sarah reported the company was projecting maturity-adjusted Ebitda for 2021 in the high $80 million to low $90 million range, with current run-rate Ebitda in the mid-$70 million range. Read more here on PE Hub.

Raising: Patient Square is raising its debut fund, which is targeting $3 billion, Buyouts previously reported. If it hits the target, that will make it among the largest-ever debut funds raised. The firm has collected about $1 billion so far for the pool, Buyouts reported.

Patient Square is among a handful of first-timers tapping the uber-competitive PE fundraising markets for capital. LPs are generally happy to stick with their well-established managers, who are coming back with new funds more frequently, and also creating new products to vacuum up more LP capital. But there is some room for first-timers, especially those led by well-known executives from larger shops (and teams who have worked together for many years).

We’ll be exploring emerging manager issues in an upcoming special report on Buyouts. If you have any thoughts, or recommendations on talented first-time PE funds in the market, hit me up at

Key-person: Just a quick note on key-person protections. I wrote about another key-person issue at a firm called Transom Capital, where one of the managing partners left earlier this year, causing the firm’s third fund to halt investments. Read about that situation here on Buyouts.

Have you noticed more key-person situations happening out there? I was thinking a few months back I hadn’t reported on a good key-person drama in a while after a few high-level ones (GSO and Palladium, to think of two). And then here we are, with at least three that I can think of off the top of my head — Transom, GoldPoint Partners and Novalpina (which is the even more rare no-fault divorce saga).

Any others out there you’ve seen, and how are they going if so? Transom’s situation seems to have proceeded relatively smoothly to resolution. Let me know if you have some thoughts.

That’s it for me! Have a great rest of your Thursday. Reach me with tips n’ gossip, feedback or book recommendations at or find me on LinkedIn.