Applied behavioral analysis provider Autism Behavioral Institute (ABI) has landed revenue-based funding from Decathlon Capital Partners. The terms of the deal were not disclosed, but the provider characterized it as a “significant investment.”
The new capital is expected to help ABI expand into new markets and support adding new payer partners.
The Charlotte, North Carolina-based provider has 11 centers across South Carolina, Washington D.C., Virginia, North Carolina, Georgia and Maryland. It provides individualized ABA treatment for children in home, school, and community settings. Additionally, it offers diagnostic evaluations for autism and parent participation training.
“Autism Behavioral Institute’s commitment to an individualized approach to applied behavior analysis therapy has helped so many families,” Chris Risey, Vice President of Decathlon Capital Partners, said in a statement. “Decathlon Capital Partners is proud to help them grow and continue to make a positive impact on the lives of children with autism.”
This new investment comes as rates of autism are at an all-time high. Roughly 1 in 36 children have autism spectrum disorder, according to the CDC.
As part of the deal, ABI will repay Decathlon Capital Partners through its future revenue, and no equity or ownership was exchanged for the growth capital, according to the release.
Decathlon Capital Partners is a revenue-financing-based firm with offices in Park City, Utah, and Menlo Park, California. It provides growth financing to companies with an annual revenue of $4 million to $100 million.
Significant headwinds, including inflation, rising interest rates and workforce challenges, have impacted the autism industry over the last few years. As a result, there has been a significant reduction in deal-making in the autism space.
M&A advisory firm The Braff Group tracked 46 autism-focused deals at its height in 2019, but that number fell to 38 deals in 2022.
Still, industry insiders note that the demand for services will likely continue to make autism one of the most desirable health care segments to invest in.
“You’re going to have down years in every industry,” Chris Tillotson, CEO of Prospera Healthcare, previously told Behavioral Health Business. “But I would say from a financial standpoint, this is a perfect place to be.”
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