HEP Recognized In 7 Behavioral Health-Focused Private Equity Firms to Watch in 2023

The need for behavioral health services is at an all-time high – and private equity investors have taken note.

In the first three quarters of 2022, private equity deals made up more than 60% of behavioral health transactions, according to data from The Braff Group. Many investors see the fragmented behavioral health industry as a prime target for consolidation and growth.

And despite global economic headwinds, behavioral health deals are still at a premium. In fact, behavioral health transactions in the first 11 months of 2022 were valued at $3.3 billion, according to a recent report from PricewaterhouseCoopers (PwC).

“All you people that think you want to be investing in behavioral health, you’re in the right space,” Dexter Braff, president of the M&A advisory firm The Braff Group, said at Behavioral Health Business’ INVEST. “But you’re going to have to pay up to get into it.”

This infusion of PE capital is in turn shaping nearly every segment of behavioral health, from substance use disorder (SUD) treatment to autism services and mental health care.

Yet no one private equity group has the majority market share of any space. That’s likely because PE firms tend to diversify their investments and avoid competing portfolio companies.