Havencrest’s Mental Health Platform Deep Eddy Grows With Dallas Expansion

The Dallas-based healthcare PE firm enhanced its mental health footprint by integrating Dallas Counseling into its Deep Eddy platform. It's set to become one of the largest outpatient mental health platforms in Texas with in-person and telehealth services.

Dallas-based healthcare private equity firm Havencrest Capital Management recently announced that the company formed an outpatient mental health platform, Deep Eddy Psychotherapy Management LLC, last year and acquired Dallas Counseling and Treatment Center Management LLC in April.

This strategic expansion is in response to the growing demand for mental health care services. Together, Austin-based Deep Eddy and DCTC represent one of the largest outpatient mental health platforms in the state of Texas, Havencrest said.

Recent data from the State of Mental Health in America 2023 report by Mental Health America reinforces the need for such initiatives. According to the State of Mental Health in America 2023 report by MHA, 20.78% of adults (more than 50 million Americans) experienced a mental illness in 2019-2020. 55% of those adults have not received treatment, according to the nonprofit organization.

Last year, the organization ranked Texas 50th out of 51 in overall access to mental health care in the U.S.

Deep Eddy and DCTC’s combined operations will serve over 6,000 patients through more than 200 clinicians at 13 locations across major Texan cities. Their services, offered both in-person and via telehealth, aim to enhance mental health care accessibility across the state.

Christopher W. Kersey, M.D., M.B.A., founding managing partner of Havencrest Capital Management, expressed his enthusiasm in a statement: “There is a significant opportunity to expand access to high-quality mental health care services through our partnerships with Deep Eddy and DCTC.”

Meeting a ‘pressing need’

Dr. Charlotte Howard, the visionary behind Deep Eddy, emphasized the potential of the collaboration.

“My colleagues and I had many options when choosing a partner, but we believe Havencrest will best enable us to deliver on our mission to help change how mental health is delivered,” she said.

Howard said the partnership can “ultimately reach more patients and improve lives through its evidenced-based care model.”

Matt Shofner, a partner at Havencrest, sees the alliance with Deep Eddy and DCTC as a pivotal move to address a pressing healthcare need. He is optimistic about their potential to effect meaningful change in the mental health sector, noting “outpatient mental health has been a subsector of immense interest for the firm.

Bradley Arant Boult Cummings LLP served as legal counsel to Havencrest Capital Management for both transactions.

Havencrest Capital Management has roughly $600 million of assets under management and comprises a leading team of investment professionals, operating partners and senior advisers, including many of the nation’s leading healthcare entrepreneurs, corporate executives, and public policy experts.

Financial terms of the agreements were not disclosed.

Quincy Preston contributed to this report.

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