Dec 16

The Morning Leverage: Deerfield Backs Recovery Centers of America

America Now EB5 Lighthouse Recovery Treatment

From this morning’s LBO Wire:

Deerfield Management Co©. has big plans for its $231.5 million investment in behavioral health operator Recovery Centers of America, Amy Or reports for this morning’s LBO Wire.

Recovery Centers of America aims to open throughout the Northeast U.S. neighborhood-based treatment centers that will provide a full spectrum of care for patients with substance issues, including detoxification, inpatient, outpatient and ongoing support services.

The investment in Recovery Centers is the latest in a slew of private equity investments in the behavioral health area, which take advantage of the increasing desire to treat mental health issues like any other medical service as well as improvements in government and commercial reimbursement for such services.

More stories available to LBO Wire subscribers:

CVC Growth Partners, the growth arm of CVC Capital Partners, has backed the second deal out of its new fund with an $80 million investment into online fraud prevention technology company Kount Inc….Clear Blue Financial Holdings LLC announced it launched with two insurance fronting carriers backed by Pine Brook Partners…Searchlight Capital Partners held a final closing on its sophomore fund with $1.9 billion in total limited partner commitments.

(LBO Wire is a daily newsletter with comprehensive analysis of all the investments, deals, fundraisings and personnel moves involving private equity firms. For a two-week trial, visit, scroll to the bottom and click “try for free.”)

Elsewhere on the Web:

Fund-of-funds manager HarbourVest Partners has hired the former global investor relations head of hedge fund Capula Investment Management as its global IR head, reports Ayesha Javed for Dow Jones sister publication Private Equity News (subscription required).

CNBC interviews Blackstone ‘s BX +4.16% David Calhoun and Tony James on the firm’s strategy to “build big” by acquiring small companies.

Singapore bank DBS Group Holdings D05.SG +3.31% has introduced a program to encourage high-net-worth individuals to invest in private equity, reports the Nikkei Asian Review

Reuters reports on Blackstone’s purchase of a minority stake in India’s IBS Software for $170 million from General Atlantic and other shareholders.