The Bottom Line: NewSpring Invests in Prosperity Behavioral Health
March 16, 2023
NewSpring ("the Firm"), a family of private equity strategies, announced today that NewSpring Healthcare, the Firm's dedicated healthcare strategy, has invested in Prosperity Behavioral Health ("Prosperity").
Prosperity is a leading provider of business process outsourcing (BPO) services to behavioral health programs
Founded in 2017, Prosperity leverages its industry-leading technology and processes to provide a wide range of outsourced services that help behavioral health treatment facilities grow and optimize their profitability. With operations across several states, Prosperity is differentiated by its strong brand, high-quality services, and established customer relationships in behavioral health treatment facilities nationwide.
Prosperity is well-positioned in the fast-growing behavioral health market
The behavioral health sector has grown dramatically over the past decade and its impressive growth rates are expected to continue. Many smaller providers need assistance handling essential business functions like marketing, human capital management, compliance, and more. These trends create a massive opportunity for Prosperity to expand the reach of its technology-enabled BPO services to more growing behavioral health treatment facilities in need of support.
Prosperity has partnered with NewSpring to continue its expansion
Prosperity will use the proceeds of this transaction to invest in its technology, expand its service line offerings, and continue adding to its team of experts. The company also expects to make strategic acquisitions that enable it to enter new markets and provide a broader set of services to a wider range of healthcare providers.
"The healthcare facilities we serve are changing lives and helping build stronger communities. At Prosperity, we're focused on doing all we can to help these organizations thrive and are eager to expand our reach into new markets in pursuit of elevating even more essential healthcare providers. NewSpring has a proven track record of growing technology-enabled service providers in the healthcare industry, and we're thrilled to work with them to bring our services to even more organizations in need."
Prosperity is led by an experienced and growth-oriented management team
As part of the transaction, Michelle Mullany, a seasoned healthcare executive with substantial behavioral health experience, has become the CEO of Prosperity. Co-founder and outgoing CEO Greg Keilin will remain with the company as Chief of Strategy and Growth Officer. Prosperity's co-founder and CFO, Aron Hacoen, Vertex co-founder Kyle McHenry, and the rest of the Prosperity team will continue in their current roles.
"As the fast-growing behavioral health sector continues its rapid expansion, many providers require support with key business functions. This market growth creates a massive opportunity for technology-enabled BPO partners like Prosperity to expand and meet this need. Led by an innovative management team focused on growth, Prosperity represents a perfect fit for our approach to helping strong technology-enabled service providers accelerate their growth."