Private Equity Stakeholder Project: Private Equity-Owned Firms Dominate Prison and Detention Services, Scaled Up Immigration Detention Has Benefitted Contractors, 2018
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Private Equity Stakeholder Project December 2018 PRIVATE EQUITY-OWNED FIRMS DOMINATE PRISON AND DETENTION SERVICES Scaled up immigration detention has benefitted contractors, private equity owners A handful of private equity firms, drawing on capital from pension funds, foundations, endowments, insurance companies, and other institutional investors have invested heavily in companies providing services to prisons, jails, and detention facilities around the United States and the more than two million people housed at those facilities. While public and investor debate around the privatization of prisons, jails, and detention facilities has largely focused on publicly-traded companies such as CoreCivic and GEO Group, the largely private equity-owned firms that provide phone services, commissary services, medical services, bail bonds and other services are perhaps more ubiquitous, serving thousands of prison, jail, and detention facilities around the country. As the Trump administration has ramped up immigrant detention, many of these same firms and their private equity owners have stood to profit. ADELANTO ICE PROCESSING CENTER (CA)1 Wellpath (H.I.G. Capital)2 Keefe Group (H.I.G. Capital)3 SCALED-UP IMMIGRANT DETENTION BRINGS MORE BUSINESS FOR PE-OWNED SERVICE PROVIDERS SAN LUIS REGIONAL DETENTION CENTER (AZ)4 Securus (Platinum Equity)5 The scaling up of immigration detention under the Trump administration has led to additional business for firms that provide services to those detainees. Many of the private equity-owned firms listed above provide services to facilities that house immigrant detainees. For example: FEDERAL CORRECTIONAL COMPLEX, VICTORVILLE (CA)6 Global Tel Link (American Securities)7 CIBOLA COUNTY CORRECTIONAL CENTER (NM)8 Wellpath (H.I.G. Capital)9 Global Tel Link (American Securities)10 YUBA COUNTY JAIL (CA)11 Global Tel Link (American Securities)12 Wellpath (H.I.G. Capital)13 Private Equity Stakeholder Project Jim Baker jim.baker@PEstakeholder.org 312.933.0230 Private Equity Stakeholder Project SEPTEMBER 2018 Partial list of private equity-owned firms providing services to prisons, jails, and detention facilities: COMPANY INDUSTRY/ SERVICES SCOPE PE OWNER(S) ACQUIRED Securus/ Jpay Telephone/ Communications Serves more than 3,400 public safety, law enforcement and corrections agencies and over 1.2 million inmates across North America. Platinum Equity 2017 Global Tel Link Telephone/ Communications Serves approximately 2,300 facilities and 1.8 million inmates in 50 states, the District of Columbia and Puerto Rico. American Securities 2011 Keefe Group/ Trinity Services Group/ Swanson Svcs/ ICSolutions Commissary/ Food/ Telephone/ Communications Keefe Commissary Network serves more than half a million inmates weekly and 12 out of 14 outsourced state departments of corrections. Telecommunications provider ICSolutions serves 180,000 inmates housed in over 200 correctional facilities nationwide. H.I.G. Capital 2012 Aladdin Bail Bonds/ Seaview Surety Bail Aladdin is the largest retail pre-trial release service provider in America. Endeavour Capital 2012 Corizon Health Healthcare Corizon Health provides quality healthcare services to our clients at 301 facilities serving over 220,000 patients in 22 states. BlueMountain Capital Management 2017 Correct Care Solutions/ Judicial Correctional Services Healthcare/ Probation Provides medical and behavioral health services for nearly 250,000 patients located in local, state and federal correctional facilities, as well as state hospitals and other facilities. H.I.G. Capital 2013/ 2018 Attenti Electronic Monitoring Global provider of electronic monitoring technologies to national, federal state and local correctional and law enforcement agencies around the world. Apax Partners 2017 Sentinel Offender Services Probation Sentinel Offender Services is a private probation company that partners with community corrections, courts and law enforcement. Bison Capital Asset Management 2012 Endnotes 1 https://www.ice.gov/detention-facility/adelanto-ice-processing-center, accessed Sept 3, 2018. 2 “Amid Crackdown, Immigrants Are Dying Of Neglect In ICE Detention Facilities,” Fast Company, Apr 27, 2017. 3 Commissary Representative GEO Adelanto job, Trinity Services Group, Lensa.com, Nov 13, 2017. 4 “What happened at an immigrant detention center while ICE officials looked the other way,” Newsweek, Jun 28, 2018. 5 6 https://securustech.net/facilities-we-serve, accessed Sept 3, 2018. “U.S. officials move to house 1,000 immigration detainees at federal prison in Victorville,” Los Angeles Times, Jun 7, 2018. 7 8 https://web.connectnetwork.com/facilities/federal-bureau-of-prisons-ca-victorville-fcc/, accessed Sept 3, 2018. “Former detainees tell New Mexico legislators about abuses in immigration detention as county seeks to renew contracts,” PRI, Jul 18, 2018. 9 https://jobs.correctcaresolutions.com/joblist?page_size=5&page_number=1&location=8367489&radius=0&locationDescription=area&locationName=Cibola%20ICE&sort_by=headline&sort_order=ASC, accessed Sept 3, 2018. 10 https://web.connectnetwork.com/facilities/cibola-county-nm-detention-center/, accessed Sept 3, 2018. 11 https://www.ice.gov/detention-facility/yuba-county-jail, accessed Sept 3, 2018. 12 https://web.connectnetwork.com/facilities/yuba-county-ca-jail/, accessed Sept 3, 2018. 13 LCSW – Per Diem (Yuba County), Correctional Medical Group Cos., Glassdoor.com, Aug 2018. Private Equity Stakeholder Project Jim Baker jim.baker@PEstakeholder.org 312.933.0230