FORMERLY PE OWNED
ATI Physical Therapy
Includes ATI, ATIP
physical therapy · Bolingbrook, IL
- PE Firm
- Advent International →
- Year Acquired
- 2016
Advent took it public through a SPAC, slashed its earnings forecast within two months, watched therapists quit in droves, and got delisted from the NYSE.
What Happened
- Advent International bought ATI in 2016, then took it public via a SPAC merger with Fortress Value Acquisition Corp. II in June 2021 — buy, load with hype, cash out through public markets
- In its very first earnings report as a public company, ATI slashed its forward revenue projections and disclosed massive therapist turnover that it had failed to mention during the SPAC process
- ATI paid $31 million to settle a class action alleging the company concealed its therapist retention crisis from SPAC investors — the lawsuit alleged they hid that clinicians were quitting faster than they could be replaced
- Delisted from the NYSE in December 2024 after its market cap fell below $15 million, then taken private in August 2025 by debt investors Knighthead Capital and Marathon Asset Management at $2.85 a share — a fraction of its $10 SPAC debut
The Damage Done
- Therapist attrition across ATI's 900+ clinics in 24 states meant patients faced appointment delays, shorter sessions, and constant provider turnover — you'd rarely see the same therapist twice
- Clinics closed across multiple states as the company hemorrhaged therapists and money simultaneously, leaving patients mid-treatment with nowhere to go
- The SPAC-fueled expansion prioritized opening new locations over staffing existing ones — more doors open, fewer therapists behind them
- Billing was outsourced to cut costs, creating a layer of confusion between patients and their insurance that made resolving claims a nightmare