January 11, 2022 DENVER, CO and MONTREAL, QC – Revelstoke Capital Partners (“Revelstoke”), a leading private equity firm focused on investing in healthcare services companies, and Caisse de dépôt et placement du Québec (“CDPQ”), a global investment group, announced today that they have completed a recapitalization of an affiliate of Crossroads Treatment Centers (“Crossroads” or the “Company”), together with the Company’s management. Revelstoke initially invested in the Company in December 2014.
Founded in 2007 by Dr. Rupert McCormac and located in Greenville, South Carolina, Crossroads is a leading behavioral health provider with an exceptional clinical reputation and a focus on substance use disorders and mental health illnesses. The Company delivers care through a variety of modalities, utilizing medication-assisted treatment (“MAT”), 24/7 access to care, in-person visits, telehealth, measurement-based care, laboratory services, and intensive care coordination services to provide complete support for the whole patient. Through its over 115 treatment locations across ten states, Crossroads helps manage over 26,000 high-risk lives.
Simon Bachleda, Co-Founder and Managing Partner of Revelstoke, said, “We are very excited to extend our partnership with Dr. McCormac and the Crossroads team, who provide proven quality care outcomes through essential healthcare services and care coordination to a vulnerable population. We look forward to supporting the Company’s ongoing growth, as it continues to advance its mission and address our nation’s substance use disorder and mental health epidemic.”
“Since its foundation, Crossroads has positively impacted the lives of thousands of individuals through its mission-driven culture and patient-centered approach to quality clinical care,” said Martin Laguerre, Executive Vice-President and Head of Private Equity and Capital Solutions at CDPQ. “We are pleased to support the next phase of Crossroads’ growth as the Company continues to make these essential healthcare services available to more patients across the United States.”
“Revelstoke has been a valuable partner to the Crossroads management team and we are pleased to welcome CDPQ as a new partner,” said Dr. McCormac, Founder & CEO of Crossroads. “This incredibly valuable partnership allows us to even further expand life-saving access to the most convenient, comprehensive, high-quality care for so many in dire need of services. We are very excited about the future.”
“Since Revelstoke’s initial investment in Crossroads, the Company has grown its geographic footprint from four to ten states and increased the number of patients it manages by more than ten times,” said Michael Constantinides, Principal at Revelstoke. “This transaction will provide the Company with further capital to pursue add-on acquisitions and invest in and grow its differentiated and comprehensive value-based care model.”
Winston & Strawn LLP provided legal advice to Crossroads, and Harris Williams acted as the Company’s financial advisor. McGuireWoods LLP and Simpson Thacher & Bartlett LLP acted as legal counsel to Revelstoke. McDermott Will & Emery LLP provided legal advice to CDPQ.
Crossroads (www.crossroadstreatmentcenters.com) exists to improve health equity in order to achieve superior healthcare outcomes. Crossroads concentrates on treating the whole person through a disciplined adherence to evidence-based practices for over 26,000 high-risk lives through its over 115 locations across ten states and broad spectrum of health care services.
Revelstoke (www.revelstokecapital.com) is a private equity firm formed by experienced investors who focus on building industry-leading companies in the healthcare and related business services sectors. Revelstoke partners with entrepreneurs and management teams to execute on a disciplined organic and acquisition growth strategy as it strives to build exceptional companies. Revelstoke is based in Denver, Colorado and has approximately $4.3 billion of assets under management. Since the firm’s inception in 2013, Revelstoke has completed 135 acquisitions, which includes 24 platform companies and 111 add-on acquisitions.
At Caisse de dépôt et placement du Québec (CDPQ), we invest constructively to generate sustainable returns over the long term. As a global investment group managing funds for public retirement and insurance plans, we work alongside our partners to build enterprises that drive performance and progress. We are active in the major financial markets, private equity, infrastructure, real estate and private debt. As at June 30, 2021 CDPQ’s net assets total CAD 390 billion. For more information, visit cdpq.com, follow us on Twitter or consult our Facebook or LinkedIn pages.