Community Corrections

Community Corrections

Notable Players

Attenti, CoreCivic/Avalon, GEO Group, The/BI (GEO Care), Libre by Nexus, Numerex, Tokio Marine, Track Group

Developments

In August 2018, California passed legislation that abolished the cash bail system and replaced it with a risk assessment-based bail system. With its business threatened, the bail bonds industry pushed back by getting the issue of cash bail put up for a vote on the 2020 ballot.

In December 2018, the U.S. Congress passed the First Step Act with the support of private prison giants, The GEO Group and CoreCivic, both positioned to benefit from the bill’s provision for private-public partnerships in reentry services.

Data & Information Systems

Data & Information Systems

Notable Players

Amazon, Equivant, Hexagon Safety, Microsoft, Northrop Gumman, Palantir, Tyler Technologies

Developments

In April 2018, the Trump administration announced the zero-tolerance immigration policy, which led to a boost in immigration detention business for the technology companies fueling deportations, including Palantir, which may IPO in 2019.

In August 2018, California passed legislation that abolished the cash bail system and replaced it with a risk assessment-based bail system.

In April 2019, Partnerships on A.I., a consortium of technology companies and civil rights groups, released a report warning against the use of risk assessment tools.

Healthcare

Healthcare

Notable Players

Aramark, Compass Group, The Elior Group, Keefe Group, Trinity Services, Union Supply, Sodexo

Developments

In October 2018, H.I.G. Capital acquired Correct Care Solutions and combined it with its portfolio company, Correctional Medical Group Companies, to form the largest correctional healthcare company, reported to have $1.5 million in annual revenues.

Operations & Management

Operations & Management

Notable Players

CoreCivic, Emerald Correctional, G4S, The GEO Group, LaSalle Southwest, MTC, Sodexo

Developments

In April 2018, the administration announced the zero-tolerance immigration policy, which led to a boost in immigration detention business for the two largest private prison operators, The GEO Group and CoreCivic.

In July 2018, New York State pensions divested from private prisons.

In August 2018, Chicago Teachers’ Pension Fund divested from private prisons.

In November 2018, California State Teachers’ Retirement System divested from private prisons.

In March 2019, immigration and criminal justice activists scored a major victory when J.P. Morgan Chase agreed to stop funding private prison construction.

In January 2019, California Governor Newsome announced his intentions to end the state’s use of private prisons during his inaugural speech.

Telecom

Telecom

Notable Players

CenturyLink, Global Tel Link (GTL), ICSolutions, Legacy Inmate, PayTel, Securus, Securus/JPay, Unisys

Developments

In July 2018, Securus, a Platinum Equity portfolio company, submitted a merger application to the FCC to acquire ICSolutions, an H.I.G. Capital portfolio company. Thanks to challenges from criminal justice advocates, in April 2019, the FCC decided the deal was against public interest and blocked the merger.

In July 2018, New York City became the first city to pass legislation making all calls out of its city jails free, setting the stage for similar state and local efforts across the country and undermining the correctional telecom industry.

In September 2018, Pennsylvania became the first state to outsource mail processing to a private company. The new contract with Smart Communications is valued at $16 million over three years and introduces a new service in the telecom space.

In January 2019, an Intercept investigation revealed new surveillance technology—voice printing and voice biometrics—being used by correctional telecom giant Securus in contracted facilities. Securus is hoping to create voice databases of incarcerated people to sell to law enforcement agencies.