Monte Nido & Affiliates, a national eating disorder treatment provider, is under new ownership, according to a new report by Axios Pro. 

Denver-based health care-focused private equity firm Revelstoke Capital Partners reportedly won the bid for Monte Nido & Affiliates.

The Beverly Hills, California-based Levine Leichtman Capital Partners presently owns Monte Nido. Levine Leichtman first invested in the company in September 2015, according to the Levine Leichtman website. 

Representatives of Revelstoke and Levin Leichtman have not responded to requests for comment. Monte Nido declined to comment on the matter.

The deal to acquire Monte Nido reportedly values the company at around $725 million, Axios Pro reports. 

PEHub.com reported in October that Levine Leichtman was seeking to exit from its investment in Monte Nido. At that time, the company could have fetched $1 billion under a 20x multiple. 

However, the private investment markets have taken a bit of a cold shower when it comes to behavioral health investment since then.

“Deal volume in general for the first quarter of 2022 returned to more modest levels with at least 41 behavioral health transactions closed,” the M&A firm Mertz Taggart reported in May. “However, there is one notable exception. The mental health sector remains hot, with 26 transactions announced in Q1, shattering the previous record of 16 set in the fourth quarter of 2021.”

This is especially true for investment in digital mental health.

CB Insights finds that digital mental health investment in the first six months of the year totals about $1.5 billion, 40% less than the first half of 2021.

Previous BHB reporting has found a potential mismatch between valuation expectations on the part of operators and investors’ assessment of their performance. However, during the first half of the year, virtual eating disorder treatment provider Equip landed a $58 million funding round and expanded its work to the Medicaid population.

Further, a rocky economic picture has mellowed investment expectations, according to the Rock Health report. 

In September, Monte Nido completed its acquisition of Massachusetts-based Walden Behavioral Care. Monte Nido rolled out a gender-inclusive eating disorder treatment program Clementine The Woodlands Conroe, Texas, BHB reported in November.