In a strategic move that reflects the evolving landscape of behavioral healthcare investment, Avesi Partners has acquired First Steps Recovery, a Fresno, California-based provider of substance use disorder (SUD) services. This marks a significant private equity behavioral health acquisition, reinforcing Avesi’s commitment to expanding access to addiction treatment and mental health care services nationwide.
While the terms of the deal were not disclosed, the acquisition paves the way for First Steps Recovery to scale its services into new states and care settings with the backing of a firm experienced in healthcare growth strategy.
Expanding Access to Full-Spectrum SUD Treatment
First Steps Recovery is well-regarded in Central California for offering a comprehensive continuum of care, including:
- Medical detoxification
- Residential treatment
- Partial hospitalization programs (PHP)
- Intensive outpatient programs (IOP)
- Virtual care
The provider treats a wide range of conditions, including alcohol, opioid, methamphetamine, and cocaine use disorders, along with co-occurring mental health diagnoses such as anxiety, depression, bipolar disorder, and eating disorders.
With a strong foundation in integrated care and a payer network that includes Anthem, Aetna, Kaiser Permanente, and Cigna, First Steps Recovery is positioned to thrive under the operational support and strategic vision that comes with this private equity behavioral health acquisition.
Avesi Partners Sees Opportunity in Outcomes-Driven Addiction Care
“Patients and payors continue to express strong demand for quality addiction treatment services focused on meeting patients where they are able to drive outcomes and long-term recovery,” said Pete Tedesco, Managing Director at Avesi Partners. “We see a compelling opportunity to help FSR leverage its track record of success to extend services into additional geographies, care settings, and programs.”
This private equity behavioral health acquisition fits squarely within Avesi’s broader strategy of investing in mission-driven healthcare organizations with scalable, patient-centered care models.
Currently focused on Central California, First Steps Recovery will now begin expanding into other states and regions—an effort that is expected to create more access points for individuals seeking high-quality, flexible addiction treatment.
Cultural Alignment and Long-Term Vision
According to Josh Beauchaine, Founder and President of First Steps Recovery, the decision to partner with Avesi was grounded in both strategy and shared values.
“Avesi’s commitment to further our core mission of providing best-in-class addiction treatment care, the strong cultural fit between our organizations, and their expertise and resources within the behavioral health market made choosing Avesi as our partner an easy decision,” Beauchaine stated. “Their experience helping scale high-growth healthcare services companies will be invaluable as we drive towards our goal of becoming the nation’s leading SUD treatment provider.”
This private equity behavioral health acquisition reflects not just a financial transaction, but a partnership aimed at transforming access to care and driving measurable recovery outcomes on a national level.
Investment Momentum in Outpatient and Hybrid Models
The timing of this deal is noteworthy. According to M&A advisory firm The Braff Group, overall deal activity in substance use disorder treatment slowed in 2023, with 45 deals, down from 66 in 2022. However, the PHP, IOP, and counseling segment recorded 17 deals in 2023, marking a record-breaking year for outpatient behavioral health services.
This shift in M&A interest highlights the demand for scalable, lower-cost care settings—an area where First Steps Recovery already excels. By combining clinical infrastructure with Avesi’s growth expertise, this private equity behavioral health acquisition positions both organizations to respond to market demand for more flexible and accessible treatment options.
Avesi’s Broader Behavioral Health Strategy
The acquisition of First Steps Recovery adds to Avesi’s growing behavioral health portfolio. In 2023, the firm acquired Muir Wood Capital, a provider focused on adolescent behavioral health, and previously invested in Point Quest, which delivers special education and behavioral support services.
These moves reflect a clear pattern: Avesi is building a diverse, complementary network of behavioral health providers. With this latest private equity behavioral health acquisition, Avesi gains access to the adult SUD treatment space—further strengthening its multi-demographic and multi-diagnostic care strategy.
Looking Ahead: National Expansion, Local Impact
For First Steps Recovery, the acquisition is more than a growth play—it’s a chance to elevate its clinical impact on a national scale. With plans to expand geographically, launch new care programs, and further integrate virtual care, the organization is entering a new phase of innovation and impact.
From an industry perspective, this private equity behavioral health acquisition is part of a broader trend in which investors are not just consolidating services—but actively shaping the future of behavioral healthcare delivery in America.
The partnership between Avesi and FSR reflects a growing realization that effective, community-based addiction treatment must be supported by operational excellence, strategic capital, and scalable infrastructure. When done right, private equity behavioral health acquisitions like this one can help close treatment gaps, improve access, and deliver better outcomes for individuals and families nationwide.
Conclusion
In a healthcare landscape hungry for innovation and improved access to care, the Avesi–First Steps Recovery deal stands out as a strategic, values-driven private equity behavioral health acquisition. With aligned missions and a clear path forward, this partnership has the potential to reshape addiction treatment delivery—not just in California, but across the country.
