Ideal Option receives financial backing from Varsity Healthcare Partners

Varsity Healthcare Partners, a lower middle-market private equity firm that focuses on healthcare services, announced it has completed an investment in Ideal Option, a medication-assisted treatment and behavioral health services provider. As part of the deal, Varsity will provide strategic guidance and growth capital to Ideal Option. Twin Brook Capital Partners, the middle-market direct lending subsidiary of privately held alternative investment firm Angelo Gordon, served as administrative agent for $35 million of financing to support Varsity Healthcare Partners’ leveraged buyout of Ideal Option.

Jeffrey Allgaier, MD, and Kenneth Egli, MD, who founded Ideal Option in 2012, as well as other members of the company’s management team will remain in senior executive roles and as large shareholders in the company, according to a news release.

Ideal Option operates 56 opioid treatment clinics in 10 states with a team of 90 medical providers. Its headquarters are located in Kennewick, Washington.

Editor's note: This story was updated on Oct. 15 to reflect that Twin Brook Capital Partners served as administrative agent for the transaction between Varsity Healthcare Partners and Ideal Option.