In recent years, private equity (PE) firms have shown significant interest in behavioral health care, but no niche has seen more explosive growth than autism services. That interest surged heading into 2020 — and by all expert accounts, it’s only the beginning.
Armed with nearly $1.5 trillion in unspent capital, firms like Blackstone Group and Carlyle Group are racing to find promising investments. Autism treatment, with its growing demand, expanding delivery models, and evolving data-driven care approaches, stands out as one of the most compelling areas for PE-backed growth and consolidation.
For providers of all sizes — whether you’re a solo practitioner or a multi-state platform — this presents a window of opportunity. But to benefit from this rising tide, it’s critical to understand what’s driving this PE interest and how to position for it.
The Private Equity Gold Rush in Autism Care
According to data from Preqin reported by Bloomberg, private equity’s war chest reached a record $1.5 trillion at the end of 2019. That’s a staggering amount of capital sitting on the sidelines, waiting to be deployed — and behavioral health, particularly autism care, has emerged as a prime target.
“We’re in a period now where a lot of private equity [firms have] made their initial investments,” said Eugene Goldenberg, managing director at Edgemont Partners. “Now they’re going to be looking to bolt on numerous acquisitions to buy down their multiple.”
In plain terms, many firms have already planted their flag in autism services by acquiring an initial platform — typically a larger provider with infrastructure and geographic reach. The next step is to acquire smaller providers and add them to the platform. This helps PE firms improve economies of scale, standardize operations, and increase their return on investment.
For smaller providers, this means acquisition offers may be coming soon. For larger providers still operating independently, now may be the perfect time to find a private equity partner.
“There are a number of larger private equity sponsors out there that don’t have [autism] platforms yet,” said 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.”
Vertical Integration: A New Model for Autism Providers
Autism spectrum disorder (ASD) affects approximately 1 in 59 children, according to the CDC’s 2018 data. Yet despite those numbers, many children go undiagnosed or receive delayed treatment. A study from Rutgers University published in Autism Research found that nearly 25% of children with autism go undiagnosed — signaling a significant gap in early intervention.
This diagnostic bottleneck has prompted many providers to expand their service offerings — particularly by adding diagnostic capabilities to their therapy-focused practices. This trend of vertical integration is catching the attention of investors, who see it as a smart way to streamline care, reduce delays, and improve outcomes.
“Right now the bottleneck in a lot of autism services is the diagnosis,” said Chris Donovan, a partner at Foley. “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.”
But diagnostics aren’t the only area where vertical integration is occurring. Providers are also diversifying the settings in which they deliver services. Traditionally, providers specialized in just one format — either home-based, center-based, or school-based care. But those that can serve clients across multiple settings are gaining traction with investors.
Goldenberg explains why: “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 new model? Be a one-stop shop: diagnose, treat, and support clients wherever they are — at home, in school, or in a clinical setting.
Infrastructure and Tech Investments Drive Value-Based Care
Alongside vertical integration, private equity is also prioritizing technology and infrastructure — particularly those that support value-based care.
Value-based care shifts the focus from volume to outcomes. In other words, providers are increasingly being asked not just how many sessions they deliver, but how effective those sessions are. And while the definition of a “successful outcome” in autism treatment is still evolving, the ability to track and report outcomes is becoming a core asset.
“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 said.
PE firms are looking for providers who already have the building blocks in place — electronic health records (EHRs), outcome tracking tools, billing systems, and scalable management structures. These systems not only demonstrate quality to insurers but also prepare providers for future reimbursement changes that prioritize effectiveness over frequency.
How Providers Can Prepare
The surge in private equity interest isn’t just about money — it’s about alignment. Investors want to back organizations that are clinically sound, operationally strong, and growth-oriented. So how can autism providers make themselves more appealing?
Here are a few practical steps:
- Invest in Technology
Upgrade your practice management and EHR systems. Start tracking outcomes in a consistent, meaningful way. - Expand Services Thoughtfully
Consider adding diagnostic capabilities or expanding to new settings (e.g., school-based services). Diversified services improve your market appeal. - Strengthen Operational Infrastructure
PE firms love clean books, efficient billing, and experienced leadership teams. Focus on streamlining back-office operations. - Develop a Growth Story
What is your vision for the future? A clear growth strategy — even if modest — can help attract the right investor. - Vet Your Partners Carefully
Not all private equity firms are created equal. Look for one that shares your values and is committed to long-term patient care, not just short-term profits.
A Unique Moment in Autism Care
There’s no denying that we’re in a defining era for autism care. Demand is rising, care models are evolving, and the investment community has taken notice.
“Multiples in healthcare, and particularly in autism, are at an all-time high,” said Goldenberg. “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.”
Whether you’re looking to sell, scale, or simply survive in an increasingly competitive landscape, 2020 is a pivotal year for autism providers. With the right strategy, it could be your most transformational year yet.
Conclusion
Private equity’s attention on autism care is more than a passing trend — it’s a reflection of market dynamics, unmet needs, and the growing recognition that autism treatment is essential, scalable, and ripe for innovation. For providers, the door is wide open. The next step is walking through it.
