Breaking the Treatment Cycle

When a Nashville-based management team went out on their own to start an addiction treatment company, Addiction Campuses (AC), they needed to raise a modest amount of capital to finance the acquisition of two small addiction treatment facilities in Tennessee with sixty-six beds. Fulcrum immediately saw their potential, investing $3.4 MM in preferred equity for a minority stake in the company. Over the next few years, AC grew rapidly, working with Fulcrum to create their first addiction campus environment aimed at breaking the traditional treatment cycle of repeated 30-day visits.

“When we started the company, one of our main focuses was: What can we do differently to ensure our clients and their families succeed post-residential care?” said Brent Clements, founder and CEO of AC. “How do we look at this from a client and family perspective, and deliver a model where they can get care long-term, as opposed to just inpatient or outpatient treatment or having to see multiple providers throughout the continuum of care?”

CONTINUED GROWTH

Fulcrum worked with AC to structure and negotiate the acquisition of Recovery Now (RN), a leading provider of digital media and web assets focused exclusively on the addiction space. Fulcrum financed this acquisition with an additional $2.1 MM in equity capital. RN has proven to be a powerful lead engine for accelerating Addiction Campus’s recent and future growth.

“Our partnering with Fulcrum has been critical to accelerating the growth on AAC through both providing the initial capital to create the platform as well as guidance as we make follow-on acquisitions and expansion” said Brent. “Fulcrum’s experience in the healthcare ecosystem has been a great fit for AC, and Fulcrum continues to provide us with the necessary resources and expertise as we build AC into a market leader.”

In addition to the acquisition of RN, rapid growth in admissions led the team to search for the next campus property.  Fulcrum and management identified a 500- acre retreat in Massachusetts as the next AC property, which opened in October 2016. They plan to open an 80-acre campus in central Ohio in September 2017.

A BRIGHT FUTURE

In 3 years, Fulcrum has helped AC’s management team grow their capacity from the initial 66 beds in 2015 to a total number of 500 beds by September 2017. Additionally, we’ve identified new investors for the real estate entity used for acquiring the new properties, and worked with management at securing the appropriate debt financing to accelerate the Company’s rapid growth.  In the near future, Fulcrum will also aid in the build out of call center and other infrastructure additions.