NexPhase Announces Recapitalization of Action Behavior Centers

Transaction marks firm’s third healthcare investment this year

New York, NY
October 24, 2018

NexPhase Capital, LP (“NexPhase”), an operationally-focused independent private equity firm, announced the successful recapitalization of Action Behavior Centers, LLC (“the Company” or “ABC”), an Austin-based provider of Applied Behavior Analysis (“ABA”) therapy for children diagnosed with autism spectrum disorder (“ASD”). ABC co-founders Ryan N. Lambert and Holly Lambert will invest alongside NexPhase in the transaction. NexPhase Operating Partner, Barbara B. Hill, has joined Action Behavior Centers as Chairperson of the Board following the recapitalization. Also joining the board is Dr. Harold Levine, who formerly served as Chief Medical Officer at Beacon Health Options.

NexPhase’s investment comes as reported diagnoses of autism among children have reached their highest recorded levels, according to an April 2018 CDC report. As reported diagnoses of autism have increased over the years, the number of behavioral care providers has not kept pace, creating a significant imbalance between the number of children diagnosed and the number of providers offering effective care. Action Behavior Centers has five locations in Texas and focuses on early intensive behavioral intervention for children between the ages of 2 and 6 years old in order to maximize clinical outcomes.

“Action Behavior Centers will help address the pressing need for additional services that children with ASD face by rapidly expanding our offering of high-quality services,” said Action Behavior Centers Board Chairperson Barbara B. Hill. “We will focus on expanding ABC’s crucial services across the state of Texas and into other states across the country, while providing exceptional care to children and their families.”
 
Hill brings a broad base of industry knowledge from a 30-year career in insurance, managed care and provider organizations. She has served in top executive roles at ValueOptions, Express Scripts, CIGNA Healthcare, Rush Prudential Health Plans and Aetna Health Plans. As an Operating Partner for NexPhase, Hill has helped multiple healthcare organizations with strategy formulation, organizational development and operational excellence.
 
“We are proud of the work we do every day serving children diagnosed with autism across Texas,” said co-founder and CEO of Action Behavior Centers, Ryan N. Lambert. “With a shared vision for our business, NexPhase is an ideal partner for ABC and the addition of Barbara and Harold to our board provides us with unique expertise to accelerate growth. We believe this transaction provides a phenomenal opportunity to bring our superior level of care to even more children and their families across more geographies.”

Andy Kieffer, Partner at NexPhase, added, “We are delighted to partner with Ryan and Holly to acquire ABC and continue growing the reach of the Company’s services. Ryan’s and Holly’s team provides a tremendous service that fits our existing healthcare investment strategy of growing exceptional organizations that address the largely unmet demand of therapy services directed towards children diagnosed with autism spectrum disorder."

Action Behavior Centers marks the fourth platform investment for NexPhase this year and its third in the healthcare sector, joining a growing portfolio of leading companies. Earlier this year, NexPhase announced its acquisition of Gulf Coast Pain Institute and formation of a new national interventional pain management platform named Clearway Pain Solutions Institute and acquisition of SYNERGY HomeCare, a franchisor of in-home senior care services.

Cain Brothers, a division of KeyBanc Capital Markets, acted as the exclusive financial advisor to Action Behavior Centers. Action Behavior Center’s legal advisor was Honigman Miller Schwartz & Cohn LLP.  NexPhase was advised by McDermott Will & Emery.

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About Action Behavior Centers
Action Behavior Centers is one of the fastest growing providers of ABA-therapy for individuals with autism in the country. The Company focuses on providing center-based care to young children so as to achieve the best results and helps them reach their highest potential. This form of therapy, known as Early Intensive Behavioral Intervention, is seen as the gold standard for treatment of pediatric autism and Action Behavior Centers is seen as one of the highest quality providers in the industry. The Company was founded in 2016 and is based in Austin, Texas.

About NexPhase Capital
NexPhase Capital is a operationally-focused independent private equity firm that makes equity investments between $25 million and $75 million in lower middle market growth-oriented companies in the consumer, healthcare, industrial services and software sectors. The firm was formed by the former principals of Moelis Capital Partners to execute, on an independent basis, the same operationally-focused strategy of completing control investments in lower middle market companies to create value through dedicated operating resources, new sales channels and effective partnerships. Led by Co-Managing Partners Kurt Larsen and Ted Yun, NexPhase advises $1.2B of private equity capital, and maintains a strategic sub-advising relationship with Moelis Asset Management. For more information, please visit www.NexPhase.com.