Matrix Announces Successful Capital Raise for Sanford Behavioral Health
RICHMOND, VA / BALTIMORE, MD – October 11, 2022 – Matrix Capital Markets Group, Inc. (“Matrix”), a leading, independent investment bank, announces that it has advised Green Castle Recovery Centers, LLC d/b/a Sanford Behavioral Health (“Sanford”) on a successful capital raise. Sanford is a residential and outpatient behavioral health provider located in Western Michigan.
Originally founded in 2015 by David and Rae Green, Sanford is a family business that began in a restored historic home in downtown Grand Rapids, Michigan as a 10-bed residential substance use disorder treatment center for women. The Greens had seen many Michiganders leaving the State in order to receive high-quality substance use disorder treatment and were motivated to try and fulfill this need close to home. Sanford then expanded by adding another home which served as a 20-bed residential treatment center for men.
As Sanford continued to expand, it also added outpatient programs to support its residential treatment as well as an outpatient eating disorder program. This resulted from the Greens’ observation that many of Sanford’s patients had co-occurring conditions in addition to their substance use disorders, including eating disorders, medical issues, and other mental health concerns.
Before the onset of the pandemic, the Greens looked to expand Sanford even further and began planning an 18-acre behavioral health campus in Marne, Michigan. Located 12 minutes from downtown Grand Rapids, the new campus, once fully operational, will house 134 beds including detox, residential substance use disorder treatment, residential eating disorder treatment and residential psychiatric treatment, as well as several outpatient programs. With the addition of the new campus, Sanford created Michigan’s first stand-alone residential eating disorder program.
To support the expansion of the business and development of additional programming, Sanford was seeking additional investors to provide growth capital.
David Green, Chief Executive Officer of Sanford said, “The Matrix Team embraced our big idea of creating a behavioral health campus, despite the many challenges wrought by the pandemic, and constantly shifting capital markets. They got to know us and our vision and expertly crafted a complex financing package. Their dedication and expertise have enabled Sanford Behavioral Health to significantly expand our services to address the mental health needs throughout Michigan and beyond.”
Ultimately, capital was secured in the form of a combination of (i) Convertible Debt through a Regulation D offering, (ii) a Sale-leaseback on the Marne property with a publicly traded Real Estate Investment Trust, and (iii) a revolving loan. Matrix provided capital markets advisory services to Sanford, including marketing the opportunity to a broad base of potential investors as well as a limited group of qualified investors for the Regulation D offering, navigating the process through a quickly evolving and tumultuous capital markets environment, advising on pricing and terms, streamlining the three-pronged solution, coordinating the various transaction counterparties, and ultimately achieving successful execution of the capital raise, positioning Sanford for future growth.
The transaction was managed by Matrix investment bankers Amanda Verner Thompson and Vasanta Pundarika, Co-Heads and Managing Directors, Casey Van de Walle, Director, and Barrett Smith, Analyst, of Matrix’s Healthcare Investment Banking Group.
Ms. Verner Thompson said, “We are happy to have supported Sanford as its financial advisor on these capital transactions. This infusion of additional funds will help Sanford continue to implement its strategic plan to provide residents across the State and beyond with access to the high quality care that is greatly needed.”
Ms. Pundarika added, “With this capital on the balance sheet, we are looking forward to seeing Sanford continue to grow and expand its business. Sanford is fulfilling a demand for specialized behavioral health treatment so that Michiganders have a comfortable and secure place to receive their behavioral healthcare support closer to home.”