In recent years, private equity’s appetite for behavioral health has grown substantially—but few sectors have seen as dramatic a rise in interest as autism care. By 2020, that interest reached a new high, fueled by vast amounts of unspent capital and a clear, unmet demand for services across the autism care spectrum.
With firms like Blackstone Group and Carlyle Group sitting on nearly $1.5 trillion in dry powder, according to data from Preqin reported by Bloomberg, the stage was set for an unprecedented wave of investment and consolidation. For autism care providers—whether small, mid-sized, or large—the message was clear: there has never been a better time to position for acquisition, expansion, or partnership.
The Next Wave of Autism Care Consolidation
Private equity firms have already made their initial forays into autism care, establishing platform companies that provide a foothold in a fragmented industry. Now, those platforms are looking to expand rapidly by acquiring smaller practices—a process known as “bolting on”—to increase their scale and decrease their acquisition multiples.
“We’re in a period now where a lot of private equity [firms have] made their initial investments,” said Eugene Goldenberg, managing director at healthcare investment bank Edgemont Partners. “Now they’re going to be looking to bolt on numerous acquisitions to buy down their multiple.”
This trend presents major opportunities for smaller autism providers looking to sell or scale. Meanwhile, larger providers without an existing private equity partner could find themselves the target of acquisition interest from PE firms still seeking their initial platforms.
“There are a number of larger private equity sponsors out there that don’t have [autism] platforms yet,” noted Roger Strode, a partner at Foley & Lardner LLP. “If you’re an autism platform, this is a good time to look for an equity partner.”
In short, both ends of the provider spectrum are hot commodities—and investors are watching closely.
Vertical Integration: The New Value Proposition
Autism spectrum disorder (ASD) affects approximately 1 in 59 children, according to the latest data from the Centers for Disease Control and Prevention (CDC). Despite these numbers, many children go undiagnosed or receive delayed intervention. A Rutgers University study recently found that one in four children with autism remains undiagnosed—a gap that presents both a public health challenge and a market opportunity.
To address this, many autism care providers are looking to vertically integrate, meaning they’re adding diagnostic capabilities to their therapy-focused models to create a more comprehensive suite of services. According to Chris Donovan, another partner at Foley & Lardner, this strategy is catching the attention of investors.
“Right now the bottleneck in a lot of autism services is the diagnosis,” Donovan said. “It’s interesting to see some of the platforms now establishing a clinician arm tasked with actually doing the diagnosis, in addition to providing therapy.”
Beyond diagnostics, vertical integration is also taking shape in service delivery settings. Traditionally, autism care has been siloed into home-based, center-based, or school-based services. But providers that can operate across multiple settings are becoming more attractive to private equity firms aiming for long-term sustainability and competitive edge.
Goldenberg concurs: “Once a child with autism enters the school system, their needs change pretty significantly… so to the extent you do not provide services in a school-based setting, that is a potential opportunity loss.”
The Push Toward Value-Based Care
Alongside vertical integration, private equity is focusing on another essential aspect of healthcare’s future: value-based care. This model rewards providers for outcomes, rather than volume—a particularly complex shift for autism care, where defining and measuring “outcomes” can be difficult.
Still, investors are betting on providers who can collect and present robust data on treatment effectiveness. The goal is not only to validate quality of care but also to better position companies for managed care partnerships and sustainable reimbursement.
Goldenberg explained that firms are prioritizing investments in systems that allow them to collect, analyze, and communicate outcomes data. This includes software, staffing, and analytics infrastructure.
“You’re going to see investment in systems, people, hardware and software to capture, analyze and deliver data that shows, ‘Yes, we have a system here, we have therapists here and we get people to conduct normal lives,’” Donovan added.
This level of sophistication signals a broader maturity in the autism treatment industry—one that aligns closely with private equity’s core strengths in scaling operations, optimizing processes, and achieving long-term returns.
What This Means for Providers
For autism providers, the takeaway is clear: whether you’re looking to grow independently or exit through acquisition, the timing could not be better.
“Multiples in healthcare, and particularly in autism, are at an all-time high,” Goldenberg said. “So if there is any doubt about your ability to grow your business or potentially bring in a new partner to help you take it to the next level, this would be the time to make moves.”
Here’s what providers should consider:
- Evaluate your readiness: Does your business have the internal systems and leadership in place to scale or transition ownership?
- Enhance your offerings: Consider adding diagnostic services or expanding to new settings like schools or telehealth.
- Invest in data: If you can’t measure outcomes, you can’t prove value. Infrastructure investments today will pay off with investors tomorrow.
- Seek alignment with mission: Not all private equity partners are the same. Look for firms that understand the sensitivities and ethics of autism care.
Final Thoughts
The convergence of capital, demand, and innovation is driving a historic moment in autism care. Private equity firms, armed with more than $1 trillion in unspent capital, are eager to find scalable, impactful investments—and autism services are at the top of their list.
For providers, this presents an extraordinary opportunity to grow, diversify, and improve care quality. But it also comes with responsibility: to maintain ethical practices, prioritize patient outcomes, and safeguard the trust of the families they serve.
The future of autism care is being written now—and with the right strategies and partners in place, both providers and investors can help shape a system that’s more accessible, efficient, and effective for everyone.
