CHICAGO–(BUSINESS WIRE)–Five Arrows Capital Partners (“Five Arrows”), the North American private equity arm of Rothschild Merchant Banking, has successfully acquired The Stepping Stones Group (“SSG”), a leading provider of therapy and education solutions for children with special needs. Shore Capital Partners (“Shore Capital”), the previous majority stakeholder, will retain a minority stake in SSG, signaling continued confidence in the company’s growth trajectory.
The Stepping Stones Group, under the leadership of CEO Anthony Rintala, operates across more than 20 states, delivering crucial services to over 42,000 children in partnership with over 300 school districts. SSG’s team of approximately 900 clinicians specializes in addressing the needs of children with autism and other special needs within educational environments.
Five Arrows Capital Partners: Strategic Investment in Healthcare and Education
Five Arrows Capital Partners represents the North American corporate private equity division of Rothschild Merchant Banking (RMB), the investment branch of Rothschild & Co. With a global presence spanning London, Paris, Luxembourg, New York, and Los Angeles, RMB manages assets totaling $9 billion. Five Arrows Capital Partners mirrors RMB’s European private equity strategy, focusing on investments in middle-market companies demonstrating strong market positions, resilient business models capable of generating consistent returns across varying economic conditions, and significant potential for value creation. Their investment focus is strategically placed within healthcare, business services, and data, software & technology-enabled services sectors, making The Stepping Stones Group a highly complementary addition to their portfolio.
Shore Capital Partners: Fostering Growth and Continued Partnership
Chicago-based Shore Capital Partners specializes in healthcare investments within the lower middle market. The firm provides management partners with essential capital, business development expertise, and deep industry knowledge to accelerate company growth and facilitate strategic acquisitions. With approximately $600 million in equity capital under management, Shore Capital has a proven track record of nurturing healthcare businesses.
Shore Capital’s initial formation of SSG in May 2014, through the simultaneous acquisitions of MyTherapyCompany and Cumberland Therapy Services, laid the foundation for significant organic and acquisitive growth. The strategic recruitment of Anthony Rintala as CEO in 2015 further propelled SSG’s development. Rintala’s extensive experience in clinical recruitment and staffing enabled the company to refine sales and recruitment processes, enhance back-office operations, expand digital marketing capabilities, and implement a cutting-edge technology platform integrated across all divisions. This proprietary technology platform is specifically designed to meet the unique demands of school districts and behavioral health professionals.
Under Shore Capital’s guidance, The Stepping Stones Group strategically expanded its reach and service offerings through the acquisitions of AlphaVista Services in June 2016 and Staffing Options & Solutions in June 2017. These acquisitions broadened SSG’s geographic footprint and service capabilities across the United States. While maintaining distinct brand identities for each operating division, The Stepping Stones Group platform offers a comprehensive suite of services, including Speech Language Pathology (SLP) and Occupational Therapy (OT), with growing emphasis on School Psychology, Special Education Teaching, and Applied Behavior Analysis (ABA) therapies.
Leadership Perspectives on the Acquisition
Anthony Rintala, CEO of The Stepping Stones Group, expressed enthusiasm about the new partnership, stating, “Five Arrows is the ideal partner to support The Stepping Stones Group in our next phase of expansion. Their team’s deep understanding of scaling behavioral health companies and leveraging technology aligns perfectly with our vision. We are eager to build upon the robust foundation established under Shore Capital’s ownership.”
Ari Benacerraf, a founding Partner of Five Arrows Capital Partners, highlighted the strategic rationale behind the acquisition: “The Stepping Stones Group has successfully developed a differentiated, technology-driven model that delivers vital services to students across numerous school districts nationwide. We are excited to collaborate with Anthony and his team to further expand the Company’s predictable revenue base through both organic growth and strategic acquisitions, solidifying its position as the preferred provider for school districts throughout the U.S.”
Ryan Kelley, a founding Partner at Shore Capital, reflected on the successful partnership, “Our journey with The Stepping Stones Group exemplifies the potential when operating executives and investment professionals collaborate effectively within a high-growth market. Shore Capital and the Board were closely involved in all key strategic decisions, from the initial investment strategy to the execution of the ambitious three-year growth plan.”
Advisors
Cain Brothers, a division of KeyBanc Capital Markets, served as the M&A advisor, and Winston & Strawn provided legal counsel to Shore Capital and The Stepping Stones Group. Five Arrows received legal counsel from Pepper Hamilton. Madison Capital Funding, a New York Life Investments Company, provided debt financing to support the acquisition.
Contacts
For Shore Capital Partners
BackBay Communications
Philip Nunes, 617-391-0792
[email protected]
For Rothschild Merchant Banking
Brunswick Group
Alex Yankus, 212-333-3810
[email protected]
