Shore Capital Partners sells Behavioral Innovations to Tenex Capital Management amid significant expansion

Shore Capital Partners, a private equity firm based in Chicago known for its focus on microcap investments, has successfully completed the sale of Behavioral Innovations to Tenex Capital Management. Behavioral Innovations, a prominent provider of center-based applied behavior analysis (ABA) therapy, caters to early intervention children with autism spectrum disorder and related developmental disabilities, operating 77 centers across Texas, Oklahoma, and Colorado.

Strategic Growth and Expansion

Since partnering with Behavioral Innovations in 2017, Shore Capital has spearheaded the expansion from 13 to 77 centers. This growth was driven by the company’s mission to provide best-in-class clinical care to children on the autism spectrum. Under the leadership of CEO Dino Eliopoulos, Behavioral Innovations has not only expanded its geographic footprint but also created over 2,300 new jobs, thereby significantly enhancing access to quality care.

John Hennegan, Chairman of the Behavioral Innovations Board and Founding Partner at Shore, expressed pride in the company’s achievements, stating, “Through the company’s significant growth, the BI team remained committed to client-centered services and a patient-first culture above all else. With a strong executive management team in place and a market with significant unmet demand, we look forward to following BI’s continued growth as a leading center-based ABA therapy provider.”

Leveraging Shore Capital’s Expertise

The expansion was largely facilitated by Shore’s expertise in the healthcare sector, providing Behavioral Innovations with the necessary operational support and resources to scale effectively and sustainably. “Shore’s partnership was invaluable and enabled us to expand rapidly,” remarked Eliopoulos. “We were able to move faster with less risk, given Shore’s years of experience investing in healthcare businesses and its deep bench of hands-on operational support typically only accessible to large-cap companies.”

Carla Edwards, Chief Clinical Officer and Co-Founder of Behavioral Innovations, also reflected on the company’s journey since its inception in 2000, emphasizing the maintained focus on providing top-tier clinical care and autism therapy services. “We look forward to continuing to support children with autism and their families with clinical resources and support,” said Edwards.

Advisors to the Transaction

The sale was advised by Jon Kreiger of Calex Partners LLC, serving as the exclusive financial advisor, and Winston & Strawn LLP, which provided legal counsel to Shore and Behavioral Innovations.

The transaction between Shore Capital and Tenex Capital Management marks a significant milestone in the healthcare investment landscape, particularly in the specialized area of autism therapy services. This sale not only highlights the value and potential of Behavioral Innovations but also underscores the importance of strategic partnerships and expert financial guidance in navigating the complexities of healthcare expansions and transactions.