Houlihan Lokey Advises ARC Health Partners

Houlihan Lokey is pleased to announce the successful placement of a $181.5 million credit facility for ARC Health Partners (ARC), a portfolio company of Thurston Group (Thurston). The transaction closed on October 10, 2025.

Founded in 2021 and headquartered in Cleveland, Ohio, ARC is a leading outpatient behavioral and mental health therapy provider. The company is differentiated by its full-service capabilities and national footprint of 91 locations across 20 states, supported by a highly aligned base of psychiatrists, psychologists, and 1,300+ clinicians. The company utilizes its full spectrum of mental health services, a data-driven approach, and a patient-centered model to drive strong clinical outcomes and consistently high patient satisfaction.

Thurston is a private equity firm that focuses on building industry-leading companies in the healthcare services sector. Founded by its Chairman and CEO, Patrick J. Haynes III, in 1986, Thurston has returned more than $4 billion of invested capital in its 39-year history. Thurston has an extensive track record of partnering with physicians and building fast-growing businesses, including Smile Doctors, U.S. Endodontics Partners, U.S. Oral Surgery Management, SGA Dental Partners, U.S. Orthopaedic Partners, Gen4 Dental Partners, ARC Health, Options Medical Weight Loss, Alpha Aesthetics Partners, and Modis Dental Partners, among others.

Houlihan Lokey’s Capital Solutions Group served as the exclusive placement agent to ARC, assisting the company in arranging, structuring, and negotiating the financing. This financing highlights Houlihan Lokey’s ability to manage a comprehensive financing process and deliver attractive terms and flexibility for both the sponsor and the company.

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