KKR-Backed Behavioral Health Provider BrightSpring Reportedly Reignites IPO Interest

BrightSpring Health Service, which provides various behavioral and physical health services, is reportedly looking to file a $1 billion initial public offering (IPO).

That’s according to a new report by Bloomberg News. This comes roughly two years after the Louisville, Kentucky-based organization filed the paperwork to go public. But last November, the company revealed that it no longer planned to go through with the IPO.

BrightSpring provides care to complex populations in need of specialized or chronic care across all 50 states. It offers various services, including applied behavioral analysis (ABA), mental health services and a behavioral health pharmacy.


 It also provides community living for people with intellectual and developmental disabilities, youth and family services, home health services and hospice care. 

Behavioral Health Business has reached out to BrightSpring for more information.

Private equity firm KKR acquired BrightSpring in 2018. As part of the deal, BrightSpring merged with PharMercia Corporation. At the time of the deal, the combined entity had a combined revenue of roughly $4.5 billion.


According to Bloomberg reporting, BrightSpring re-engaged Goldman Sachs Group and KKR’s capital market division for the new IPO, which is expected to be filed in the fourth quarter.

Behavioral health IPOs have been few and far between the last few years. In 2021, outpatient behavioral health provider LifeStance (Nasdaq: LFST) went public. It has hit a rocky road on the public markets. The stock was worth roughly $24 per share when it first went public. It is now valued at just under $7 per share.

One of the more popular exit strategies for private equity-backed behavioral health companies is M&A. In the first half of 2023, there were 75 behavioral health deals, according to M&A advisory firm The Braff Group. While this is down 33% year over year, the number of M&As in behavioral health far outnumbers IPOs.

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