Private equity firm Optimal Investment Group has recently made a strategic investment in substance use disorder (SUD) treatment provider, Recovery Dynamics. This investment is intended to support the growth and expansion plans of Recovery Dynamics, enabling the company to enhance its service offerings and scale its operations.
Joey Separzadeh, managing partner at Optimal Investment Group, expressed confidence in Recovery Dynamics’ vision and operational expertise. He stated, “Our investment reflects our confidence in the company’s vision and operational expertise, and we are committed to providing the resources necessary to help them scale and innovate.”
Recovery Dynamics, headquartered in Sherman Oaks, California, offers a range of services including medically assisted detoxification, outpatient detox, and inpatient and outpatient rehabilitation. With the backing of Optimal Investment Group, the company aims to expand its treatment programs to include specialized mental health care and other offerings, seeking to provide comprehensive care for individuals struggling with substance use disorders.
In addition to supporting Recovery Dynamics’ growth, Optimal Investment Group will explore potential acquisitions to expand the company’s geographic footprint and reach more individuals in need of treatment services. The firm, known for investing in lower-middle-market businesses in North America, has a portfolio that includes companies in business services, logistics, and consumer product sectors.
The investment in Recovery Dynamics comes at a time when the behavioral health industry is experiencing increased interest from private equity firms. In January alone, several behavioral health companies received new funding or private equity backing, showcasing a growing trend of investment in this sector.
Among the notable investments in January were three private equity firms investing in Already Autism Health, virtual autism therapy and testing company Prosper Health securing $16 million in funding, behavioral health technology company Eleos raising $60 million, digital health company DarioHealth raising $25.6 million, dental health chatbot Slingshot AI securing $40 million, and Mindful Health extending a funding round to $12 million.
Overall, the investment from Optimal Investment Group in Recovery Dynamics highlights the continued interest and investment in the behavioral health sector, as companies seek to expand their services and reach more individuals in need of support for substance use disorders and mental health challenges.