Yukon Partners has made a debt and equity investment in Encore Rehabilitation Services LLC.
Farmington Hills, Michigan-based Encore provides rehabilitation services, plus compliance and revenue cycle management to skilled nursing facilities. The company provides physical, occupational and speech therapy. Terms of the deal were not disclosed.
Alongside Yukon, Revelstoke Capital Partners also made an investment. Yukon and Norwest Mezzanine Partners provided subordinated debt financing for the deal, and Ally Corporate Finance acted as administrative agent on the senior credit facility. Golub also participated in the senior credit facility.
Yukon Partners, headquartered in Minneapolis, is a mezzanine finance firm that invests between $10 million and $40 million in middle-market transactions. The firm closed a $400 million mezzanine fund in November.
Revelstoke, a Denver private equity firm, is planning to help the company pursue add-on acquisitions. Earlier in January, the firm invested in another health care business Crossroads Holding LLC, which provides substance abuse treatment services.
Several other rehabilitation businesses have attracted investors recently. In November Athletico Physical Therapy agreed to buy Accelerated Rehabilitation Centers, and Kindred Healthcare Inc. (NYSE: KND) agreed to buy Centerre Healthcare Corp.