HPS Investment Partners has agreed to become the majority owner of Discovery Behavioral Health through a restructuring that significantly reduces the behavioral health provider’s debt obligations.
Under the agreement, which remains subject to regulatory approvals and other consents, HPS-managed funds will exchange debt relief for an ownership stake in DBH. The transaction is designed to strengthen the company’s financial position and provide additional flexibility to invest in its clinical programs, workforce and patient care operations. As part of the restructuring, DBH also appointed a new board of directors and named Pete Clarke as chief executive officer.
Discovery Behavioral Health operates more than 100 treatment programs across 12 states, providing evidence-based care for mental health conditions, eating disorders and substance use disorders. The company serves children, adolescents and adults through a network of behavioral health facilities and stated that its clinical leadership, licensing, accreditation, and regulatory standing will remain unchanged.