The financing was provided through a $2-billion capital pool that Charlesbank has earmarked for acquisition and expansion financing for growing companies and real estate assets. NextHealth operates a luxury spa resort and a substance and mental disorder treatment center. Both properties are located in Tucson.

The Miraval is a 106-room resort acquired by NextHealth in 1995. The spa focuses on stress management, spa treatments and recreational activities and was listed second as the "Top Destination Spa in North America and the Caribbean" by Conde Nast Traveler magazine readers.

The Sierra Tucson is a 79-bed treatment center started by NextHealth in 1983. The center provides intensive inpatient treatment for substance abuse and behavioral and emotional disorders.

Andrew DiMatteo, Charlesbank's senior vice president of real estate, tells GlobeSt.com that the financing primarily will be used for recapitalization purposes. The money buys Charlesbank some profit participation in what DiMatteo says has been a steady business.

Revenues have been affected by the hospitality industry's bottoming out from post 9/11, but DiMatteo says "the hotel industry is getting out of its funk. The fundamentals are definitely improving." He says NextHealth's plan is to focus on its existing properties and not redirect any backing into buys.

In a prepared statement, Charlesbank's managing director Chip Douglas said he hoped the capital commitment will help NextHealth to "build on the excellent reputations of Sierra Tucson and Miraval." He expressed confidence that the properties will be good performers for Charlesbank.