May 19, 2016

New York, NY, May 16, 2016 – New MainStream Capital (“NMS”), announced today that, in partnership with company CEO and Founder William “Bill” Morrison, it has acquired Constellation Behavioral Health, LLC (“CBH” or the “Company”), a Mill Valley, CA based company that offers specialized treatment programs for addiction, mental health and co-occurring behavioral health disorders. NMS anticipates providing additional equity capital to support CBH’s future growth, both through strategic acquisitions and de novo facility openings.

Founded in 2010, from day-one CBH has focused on the fundamental belief that excellent treatment outcomes require an intense focus on diagnosing and treating co-occurring disorders, and that a program’s success ultimately depends on a strong combination of best-in-class medical experts, clinical talent and professional management. CBH is nationally recognized for its state of the art diagnostic testing and assessment capabilities, its world-class clinical and medical teams, and its ability to create life transforming treatment experiences. Today the Company operates two sets of facilities: Alta Mira and Bridges to Recovery. Alta Mira is a 30-bed facility located in Sausalito, CA encompassing 30,000 square feet that offers treatment services to meet the needs of adults with addiction and co-occurring psychiatric disorders. Bridges to Recovery is a 12-bed facility located in Los Angeles, CA that offers treatment services to meet the needs of adults with psychiatric, psychological and co-occurring addiction disorders.

“I am thrilled to be partnering with New MainStream in order to continue pursuing our vision at Constellation for creating industry leading behavioral health programs,” said Bill Morrison. “The investment team at NMS brings a lot more than capital to CBH. They have deep domain experience in the healthcare services space and a proven track record of helping management teams execute against their strategic growth plans.”

Kevin Jordan, NMS Co-Founder and Managing Partner remarked, “We have been sifting through numerous investment opportunities in the behavioral health space for some time now, seeking a high caliber platform to build upon. In CBH we’ve found everything we were looking for – clinical excellence, an existing infrastructure to support growth, and a fabulous management team.”

Together, NMS and CBH plan to grow through a combination of de novo startups and strategic acquisitions across the behavioral health treatment spectrum including substance abuse and chemical dependency, process addictions, mental health and eating disorders. Luis Gonzalez, NMS Managing Director said, “CBH is a market-leading provider with a best-in-class clinical model that is well positioned for growth, both organically and through strategic acquisitions. We look forward to partnering with Bill and his team in building on the substantial success that the Company has achieved in serving the growing demand for behavioral health services.”

Coker Capital Advisors served as exclusive financial advisor to CBH and Perkins Coie LLP served as legal advisor to the Company. McDermott Will & Emery provided legal advice to NMS.

About Constellation Behavioral Health

Constellation Behavioral Health is an organization dedicated to developing highly specialized treatment programs serving individuals and families suffering from addiction, mental health and co-occurring disorders. Constellation programs include its flagship facility, Alta Mira Recovery Programs, a nationally recognized adult residential dual diagnosis treatment center located in Sausalito, CA, and Bridges to Recovery, a premier residential treatment program for individuals struggling with mental health disorders located in Los Angeles, CA. Our mission is to provide inspiration, strength and hope for individuals suffering from addiction and mental health disorders so that they can heal, transform their lives, and realize all the possibilities of a life in recovery. Our vision at Constellation is to partner with entrepreneurs to create best-in-class treatment programs founded on a common set of principles, including clinical and medical excellence, a spirit of innovation, and superior patient experiences.

For more information about CBH and its treatment programs visit www.constellationbehavioralhealth.com.

About New MainStream Capital

New MainStream Capital is a private investment firm specializing in strategic equity investments and leveraged buyouts of lower middle market companies. NMS focuses on companies headquartered in the U.S. poised to benefit from sustainable growth trends. NMS has invested across a broad spectrum of industries, with particular concentration on service oriented businesses in the following three sectors: Healthcare Services, Business Services, and Consumer Products and Services.

For additional information on NMS, visit the firm’s website at nms-capital.com.

Contacts:

Bill Morrison
Chief Executive Officer
Constellation Behavioral Health
415-339-6081
wmorrison@constellationbh.com

David M. Peterson
Principal
New MainStream Capital
(212) 422-7099
dpeterson@nms-capital.com