November 1, 2016
From The Deal

Pharos rides the behavioral health wave

by Vicky Huang

The PE firm invested in Logan Rivers, whose current owners Larry Carter and Jeff Smith will maintain a minority stake.
Pharos Capital Group LLC is doubling down on behavioral health, announcing what represents its fifth investment in the sector this year so far as demand for treatment of mental disorders remains high.
In its latest buy, the Dallas- and Nashville-based private equity firm said Oct. 24 that it has acquired Logan River Academy, a residential treatment center. Financial terms of the transaction were not immediately disclosed.

Managing chronic conditions to help prevent acute conditions ultimately leads to a more efficient national health care system, explained Bobby Guy, a Nashville-based health care M&A lawyer at Polsinelli LLP.
"The health care M&A market right now across all sectors is hot, hot, hot and behavioral [health] should not be an exception," said Guy.

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