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Fifth Street Provides $130MM Facility to Webster Capital Portfolio Company

October 15, 2015, 07:13 AM
Filed Under: Healthcare

Fifth Street Asset Management announced today that its affiliate, Fifth Street Management LLC, served as lead arranger and administrative agent for a $130 million one-stop financing facility in support of Webster Capital portfolio company, Behavior Health Holdings. Behavior Health operates outpatient clinics across the country that provide methadone treatment and counseling services to assist patients with opioid addictions. The financing facility, which includes investments from Fifth Street Finance Corp. and Fifth Street Senior Floating Rate Corp., was used to refinance the company's subsidiary, Bay Area Addiction Research and Treatment, Inc. ("BAART"), and support the strategic acquisition of MedMark Services Inc., a provider of addiction treatment and primary care services. The combination of BAART and MedMark creates the third largest methadone provider in the U.S.

This financing is the fifth that Fifth Street has completed in support of Waltham, MA-based private equity firm, Webster Capital. Webster Capital focuses on well-managed companies with unrealized growth potential, particularly in the consumer and healthcare services sectors.

"Fifth Street distinguished itself and was selected to lead this financing due to its capability for large hold sizes per transaction, speed of execution and flexible approach," said David Malm, Co-Managing Partner and Head of Healthcare Services at Webster Capital, adding, "The team quickly understood our strategic vision for the BAART and MedMark combination, which we believe presents a unique opportunity to leverage their complementary strengths and create a significant change in our market position."

"We are pleased to partner with Webster Capital once again, as the MedMark acquisition is consistent with their strategy of backing exceptional managers with best-in-class operations," stated Ivelin Dimitrov, Chief Investment Officer at FSAM, adding, "We look forward to working with both Webster and the company's leadership as they continue to expand and make a difference in the lives of thousands of patients amidst rising opioid addiction in the U.S."

Fifth Street Asset Management has over $5 billion of assets under management across two publicly-traded business development companies, Fifth Street Finance Corp. and Fifth Street Senior Floating Rate Corp., as well as multiple private investment vehicles. The Fifth Street platform provides innovative and customized financing solutions to small and mid-sized businesses across the capital structure through complementary investment vehicles and co-investment capabilities.

Founded in 2003, Webster Capital is a private equity firm with over $600 million of committed capital which invests in the branded consumer and healthcare services industries.

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