Wayne, PA – April 2, 2020 – RCap Equity, a Philadelphia-area private equity firm, announced today that it has made a growth investment in Ascension Recovery Services (“Ascension RS” or the “Company”). Based in Morgantown, West Virginia, Ascension RS is the industry leader in developing and managing comprehensive, fully integrated behavioral health systems, treating substance use disorder (SUD) and co-occurring disorders across the full continuum of care.
Founded in 2016 by Douglas M. Leech, Ascension RS has developed SUD and co-occurring disorder treatment programs across 25 states. The development of treatment facilities encompasses the entire continuum of care, including sober living homes/recovery residences, stabilization/detoxification and residential treatment facilities, outpatient programming, peer support services, and job training / workforce reintegration. Clients include hospitals and large health systems, community behavioral health providers, investor groups, local, state, and federal government, and public and private payers.
Randall Kutch, General Partner of RCap Equity, said, “There is a large unmet need in the United States for substance use treatment. Ascension RS has created a highly scalable platform with proven, evidence-based development programs and management services for effective long-term treatment of this disease. We are excited to partner with Ascension RS and look forward to working with Doug and his team to accelerate their growth.”
Ascension RS’s Founder and CEO, Doug Leech, added “The compounded fallout from the existing opioid epidemic together with the COVID-19 pandemic has further exacerbated the systemic strains on the healthcare industry, economy, and the population struggling with SUD and co-occurring disorders. It became even more critical that Ascension RS was able to scale rapidly and efficiently to be able to respond to the increase in demand for our services. We are grateful and excited to be partnering with RCap Equity, as they believe in our mission and have demonstrated an ability to help founder-led businesses transform and achieve greater scale. We look forward to working with them as Ascension RS continues to execute its strategic vision to expand access to care around the country for those struggling with addiction and mental illness.”
7 Mile Advisors served as the sell-side advisor to Ascension RS. Winthrop & Weinstine served as legal counsel and Miller Cooper as a financial advisor to RCap Equity.
About Ascension Recovery Services
Based in Morgantown, West Virginia, Ascension Recovery Services is an innovative provider of strategic advisory, consulting, development, and management services for behavioral health treatment across the country. Ascension RS has grown to be a trusted partner in the industry through its passion to help others struggling with addiction and mental illness. More information can be found at www.AscensionRS.com
About RCap Equity
Based in the Philadelphia area, RCap Equity is a private equity firm specializing in control equity investments in lower middle market companies. The firm is an active investor in profitable and growing enterprises across a broad range of industries. The RCap team, in partnership with management, seeks to create value through operational improvements, strategic growth initiatives, and tuck-in acquisitions. More information can be found at www.rcapequity.com