Group led by billionaire buys local behavioral health chain

Foundations Recovery Network getting capital, hospitality expertise

A behavioral health care venture with ambitions to grow locally and nationally now has the capital to do so.

An investment group led by Chicago-based billionaire Nick Pritzker has acquired Foundations Recovery Network from Sterling Partners for an undisclosed sum. The investors say they plan to give the company led by Rob Waggener the money to grow its network of treatment centers in California, Memphis and Atlanta. (We recently reported that one of the cities in which the company wants to build a presence is Nashville.)

Foundations' twist on behavioral health is that it treats co-occuring addiction and mental health issues. In turn, the Pritzker group — whose leader used to lead development efforts for the Hyatt hotel chain — wants to bring lessons learned in hospitality to the company.

"This investment combines innovations in behavioral health treatment with a leader in hospitality management," said Waggener. “We are extremely excited about the opportunity to work with Nick Pritzker and his team in further expanding our network of treatment centers that provide quality patient centered care.”