Private equity investors continued to flock to behavioral health in the third quarter. PE acquisitions accounted for more than 60% of all behavioral health deals in his first three quarters of 2022, according to a new report from The Braff Group.
Although deals are down from the extraordinary year of 2021, 2022 behavioral health deals are expected to surpass 2020. There were a total of 151 deals in the first three quarters of the year for behavioral health.
“There were few surprises in the third quarter, and our outlook for behavioral health M&A for the remainder of 2022 remains unchanged from our interim report,” the Braff Group wrote in its report. increase. “not so strong [2021], but the decade-long arc of increasing interest and investment in the field continues today. ”
According to The Braff Group, if you compare the first three quarters of 2022 to 2020 instead of 2021, transaction volume is up about 5%. Additionally, substance use disorder (SUD) deals are up 9% from 2020, mental health deals are up 14%, and his IDD acquisitions other than autism are up 33%.
Medication-assisted therapy (MAT) investments are actually set to reach 29 deals this year, which will lead to 2021.
Private equity investors are still very active in the behavioral therapy space. Braff Group has identified 11 go-to-market platform PE investments in his IDD space in 2022, which he has already surpassed in 2021.
Additional private equity investment is also on the rise. Less than a quarter of his private equity deals are on the platform and the rest are additional investments.
Overall, the market has started to cool off since last year. The Braff Group reports that in 2021 he will have 256 deals, a 35% increase from the previous year.
Dexter Braff, President of The Braff Group, told Behavioral Health Business INVEST about the 2021 boom: “The expectations of the investment community, when COVID really put that hook in the market, made them say, ‘We really need to get into this market. I knew from
We had a number of notable acquisitions in the third quarter.
For example, PE-backed of ARC Health Acquisition of Focus Forward Counseling & Consulting Sasco River Center LLCIn addition, PE companies Lee Equity Partners acquired substance use disorder provider Bradford Health in October.
