Seacoast Capital has exited its investment in Walden Behavioral Care via the latter’s company sale to Monte Nido & Affiliates. No financial terms were disclosed. Headquartered in Waltham, Massachusetts, Walden is a provider of behavioral health services for individuals with eating and mood disorders.
BOSTON, Oct. 27, 2021 /PRNewswire/ — Seacoast Capital (“Seacoast”), a lower middle market non-control growth capital investor, announced today its exit from its investment in Walden Behavioral Care (“Walden” or “the Company”). Over the term of Seacoast’s investment, the Company nearly doubled revenue, EBITDA, and its daily patients served. Seacoast exited its investment in Walden in a sale to Monte Nido & Affiliates, one of the country’s leading eating disorder treatment providers.
Founded in 2003 by Stuart Koman, Ph.D., and headquartered in Waltham, Massachusetts, Walden is one of the premier providers of behavioral health services for individuals with eating and mood disorders. The Company was one of the first healthcare providers in the country to offer a full continuum of medical, behavioral, and nutritional care services for the treatment of eating disorders across inpatient, residential, partial hospitalization, and intensive outpatient care settings.
Seacoast helped us navigate growth opportunities, stayed through strategy changes and made additional capital available.
In June 2014, Seacoast initially invested in Walden to assist with the organic growth of the business. Seacoast then made two follow-on investments in the Company in 2017 and 2019 to further expand Walden’s geographic footprint into the Atlanta market and to build a new hospital in Dedham, Massachusetts. In total, Seacoast invested $11.25 million in subordinated debt and preferred stock in Walden over its 7-year hold period.
“Seacoast Capital has been a great partner for us,” said Dr. Koman. “They’ve helped us navigate our many expansion opportunities, stayed with us through strategy changes due to the pandemic, and made additional capital available as we continued to scale. We’ve appreciated having Seacoast on our Board.”
“Stu Koman and his team have always been committed first to their patients. The work they do in helping people of all ages with eating and mood disorders has been remarkable—they save lives every day,” said Tom Gorman, a Partner at Seacoast Capital. “In addition, the Walden team’s ability to make keen business decisions and expand during the pandemic is testament to their abilities. We will miss being a part of the Walden team.”
In addition, Alan Rich, a Vice President at Seacoast Capital, said, “Walden’s ability to leverage their multi-channel delivery model showed the agility of the team across every care setting. We wish Walden well as they commence their next chapter with Monte Nido.”
About Seacoast Capital
Founded in 1994, with offices in Boston, MA and San Francisco, CA, Seacoast Capital invests non-control growth capital in partnership with management in lower middle market companies. Seacoast is industry agnostic and typically invests $5 million to $25 million of capital in companies with $10 million or more in revenue and $2 million or more of EBITDA. Capital is used to support growth, refinancings, acquisitions, family wealth and ownership transfers, shareholder liquidity events, and partnership or management buyouts. Geographically, Seacoast invests anywhere in the United States. Since its inception, Seacoast has managed over $600 million of capital, which the firm has invested in 82 non-controlling transactions. Now managing its fourth fund, Seacoast Capital Partners IV, L.P., the firm continues to actively seek new investment opportunities. Learn more by visiting www.seacoastcapital.com.