Embark Behavioral Health, a leading provider of mental health services for preteens, teens, and young adults, has received a major investment from private equity firm Consonance Capital Partners, which now holds a controlling stake in the company. Valued at approximately $400 million, the equity sale reportedly carried a multiple range of 12- to 15-times EBITDA and officially closed in September. This funding sets the stage for an ambitious growth strategy aimed at expanding the reach of youth behavioral health programs and enhancing the quality of care provided. The deal reflects a growing trend in Youth Behavioral Health Investments, as private equity increasingly supports organizations addressing critical mental health needs for young people.
Comprehensive Services and Evidence-Based Treatment
Embark Behavioral Health offers a wide array of services, including outpatient care, wraparound services, virtual programs, intensive outpatient programs (IOP), partial hospitalization programs (PHP), short-term and long-term residential care, and outdoor behavioral health programs. The company addresses a range of challenges including anxiety, depression, eating disorders, and substance use, using evidence-based treatment modalities such as trauma-focused cognitive behavioral therapy (TF-CBT), multisystemic therapy, dialectical behavior therapy (DBT), and SMART Recovery. “Our goal is to provide a complete continuum of services to meet the families where they need us,” said CEO Alex Stavros. “We don’t use a one-size-fits-all approach.”
Strategic and Deliberate Growth
Stavros, who joined Embark in 2011 and also serves as founder and managing partner of Lia Capital Partners, emphasized that the organization’s growth is deliberate and strategic. “We don’t do roll-ups because of the negative impact it can have on quality and culture, and we aren’t growing for the sake of growing,” he said. “Our success has not been overnight and is not a flash in the pan.” Embark currently operates 27 programs across 40 locations in 15 states, and plans to open 60 additional outpatient clinics over the next three years. The company also aims to increase the number of families served in 2023 by more than 1,000, building on the nearly 1,500 families it supported in 2022. These expansions are part of a broader wave of Youth Behavioral Health Investments that aim to address the nationwide shortage of services for young people.
History and Previous Investors
Embark’s history reflects steady, thoughtful growth. The organization is a fusion of four established programs: Calo Programs, InnerChange Programs, New Vision Wilderness Programs, and Potomac Pathways. Housatonic Partners, an early investor, first supported the company in 2016 and reinvested in 2018 to fuel further expansion. With Consonance Capital Partners now on board, Embark is well-positioned to scale its services while maintaining its focus on quality and culture. This investment exemplifies how private equity can drive positive change in youth mental health through targeted Youth Behavioral Health Investments.
Innovation and Virtual Services
The recent funding also enables Embark to expand its virtual services, launched late last year, providing more families with accessible care regardless of location. The company additionally established the Embark Behavioral Health Foundation to support systemic solutions and underserved communities. These initiatives demonstrate Embark’s broader mission of using business as a force for good, a principle that has guided its growth and approach to care.
Market Trends and Increased Investment
Interest in youth behavioral health has surged following the COVID-19 pandemic, highlighting a critical need for services and prompting a wave of capital investment. Reports show that Youth Behavioral Health Investments increased significantly in 2021 and have continued in 2023. Other notable deals include Muir Wood LLC securing funding from Avesi Partners and The Vistria Group investing $200 million in Sandstone Care, a multispecialty provider focused on teens and young adults in multiple states. Embark’s deal with Consonance fits squarely within this growing market trend, reflecting the increasing recognition of the importance of mental health services for young people.
Consonance Capital Partners and Strategic Support
Consonance Capital Partners, which specializes in middle-market healthcare investments, brings both capital and strategic guidance to support Embark’s expansion. The firm has raised over $1.3 billion across two funds and targets companies with revenues between $25 million and $500 million. Its portfolio includes Psychiatric Medical Care, which operates facilities across 30 states. By aligning with Consonance, Embark can continue to expand while maintaining the high standards of care that families rely on, making it a prime example of the impact of thoughtful Youth Behavioral Health Investments.
Looking Ahead
Looking ahead, Embark aims to strengthen its presence in individual markets with comprehensive services covered by health insurance plans. “We are focused on careful and strategic decisions, ensuring quality and culture remain intact as we grow,” Stavros said. With its headquarters recently relocated to Chandler, Arizona, Embark is well-positioned to implement its expansion strategy, meet the growing demand for youth mental health services, and continue serving as a leader in the field of Youth Behavioral Health Investments.
Conclusion
By combining clinical expertise, evidence-based treatments, and strategic capital partnerships, Embark Behavioral Health is set to significantly increase access to care for young people and families across the United States. The infusion of private equity underscores a growing recognition that supporting mental health for youth is both a societal necessity and a sustainable business opportunity. With this new investment, Embark is prepared to expand its footprint, enhance service delivery, and make a lasting impact on youth behavioral health nationwide.
