HCP & Co., a Chicago-based private-equity firm, said it made its first healthcare investment in Polaris Hospital Co., a behavioral health and rehabilitation hospital operator.
Private-equity firm invests in rehab operator
“HCP has been searching for a platform to capitalize on the increasing demand for behavioral health services and the lack of facilities to supply the needed care,” Victor Maruri, a managing partner of HCP, said in a news release.
The firm invests in companies with revenue between $10 million and $100 million. HCP holds a majority stake in Polaris after the deal.
Kevin Lee, president and CEO of Polaris, said the HCP investment is the company's first infusion of private equity. Lee, who founded the company, was among 30 original investors to start the company in 2007.
Private-equity funds will be used as capital for operations in Murfreesboro, Tenn., and expansion into new markets, he said. “It's all for growth,” Lee said. Polaris, based in Brentwood, Tenn., operates a hospital in Lubbock, Texas, and is building a $27 million hospital in Murfreesboro. The 60-bed facility will offer rehabilitation, physical medicine and psychiatric services.
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