Pharos Capital Acquires Logan River Academy

Residential School for Adolescents Adds to Firm’s Behavioral Health

DALLAS & NASHVILLE, Tenn.–(BUSINESS WIRE)–Pharos Capital Group, LLC (“Pharos”), a private equity firm based in
Dallas and Nashville, has acquired Logan River Academy, an adolescent
residential treatment center in Logan, Utah. Several members of the
company’s original management team have rolled over a minority equity
stake in conjunction with the transaction. Additional terms of the
transaction were not disclosed.

Logan River helps male and female students ages 12-18 who have
difficulties in the home, community and school. The Company works with a
wide range of behavioral and emotional issues, including autism spectrum
disorders, adoption issues, anxiety, oppositional behavior, bipolar
disorder, PTSD, substance abuse, depression, ADHD, impulse control,
anger management, self-esteem, family relationships and academic
struggles. Logan River’s programs emphasize the importance of treating
the whole child and family in a nurturing residential environment where
therapy is provided by licensed clinicians and students attend a fully
accredited school with certified teachers.

Larry Carter and Jeff Smith, both current owners of the Company, will
continue as Executive Director and Chief Operating Officer,
respectively, under the new ownership. In addition, Ed Irby, a longtime
behavioral health and special education executive with whom Pharos has
an existing relationship, will head a new holding company, The Family
Treatment Network, that Pharos has set up to manage its investments in
special schools, psychiatric residential treatment centers and
community-based programs for children, adolescents and their families.

“Pharos is building its portfolio of behavioral health companies and the
acquisition of Logan River is a logical extension of that strategy,”
said Joseph Acevedo, Principal at Pharos. “Larry and Jeff have built a
premier service for families seeking effective education and treatment
for their loved ones dealing with adolescent issues. We have been
impressed at how much they care for the students in this program – it is
clear they want to see these teens achieve successful outcomes.”

Mr. Irby confirmed, saying, “The need for residential centers is
growing; stigma has lessened, and this residential treatment model is
becoming accessible to more people. These are trends we expect to
continue, and we believe Logan River has not only positioned itself as a
leading company in the sector, but is poised to grow through its use of
innovative strategies, including programs targeted to teenagers on the
autism spectrum and separate services catering specifically to female

Mr. Carter commented, “We are excited to be working with the Pharos
team. Pharos shares our vision of providing high quality treatment
services based on respect for the individual in an appropriate setting.
They will be invaluable partners as we aim to broaden our reach to
accommodate more students and families.”

This marks the eighth portfolio investment from Pharos Fund III,
following Pharos’ acquisitions of Seaside Healthcare, Inc., a behavioral
health services provider; Employee Benefit Solutions, a provider of
healthcare cost containment and wellness programs; Motion PT, a leading
provider of physical therapy and occupational therapy in the Northeast;
Dermatology and MedSpa, Inc., a provider of medical/surgical and
cosmetic dermatology services; Beacon Specialized Living Services, Inc.,
a provider of residential healthcare services to individuals with
intellectual and developmental disabilities; FasPsych, a provider of
telepsychiatry services; and TechLab, a developer of diagnostic tests
for gastrointestinal disease.

Bass, Berry & Sims LLP served as legal counsel to Pharos and BDO, LLP
was Pharos’s financial consultant. Parr, Brown, Gee, & Loveless, LLP
provided legal counsel to the Company.

About Logan River Academy

Logan River Academy, LLC (
is an adolescent residential treatment center based in Logan, Utah. With
a strong emphasis on both education and therapy, Logan River features a
nurturing, therapeutic living environment, a fully-accredited high
quality education program, and a full range of group, individual, family
and chemical dependency counseling. The clinical staff is comprised of a
number of specialty providers, including psychiatrists, psychologists,
clinical social workers, marriage and family therapists, mental health
counselors, and nurses. Logan River Academy has been in operation for
over 13 years and has served over 1,100 students.

About Pharos Capital Group

Based in Dallas and Nashville, Pharos Capital Group (
is an SEC Registered Investment Advisor. Since inception, Pharos has
invested in 51 companies and currently has over $750 million of private
equity assets under management. Pharos typically invests $25-$50 million
in rapidly growing middle market companies seeking later stage funding
for internal growth, acquisitions, leveraged buyouts, management
buyouts, or recapitalizations predominantly across healthcare sectors.


Owen Blicksilver Public Relations, Inc.
Caroline Luz, 203-656-2829