The behavioral health sector may be on the cusp of another wave of investment, as Summit, New Jersey-based Concord Health Partners announced the final close of a $150 million fund aimed at growth-stage companies. Named the Concord Innovation Fund II, this fund targets businesses that offer innovative technologies or solutions designed to improve care access, enhance quality, or reduce costs. This move is a strong signal that behavioral health private equity continues to attract interest from investors looking to capitalize on unmet needs and scalable solutions.
Strategic Focus: Technology and Care Innovation
Concord Health Partners has already deployed half of the fund’s capital across several health care companies, including:
- Iris Telehealth: An Austin-based telepsychiatry company providing remote behavioral health services. Concord Health Partners, in partnership with Seattle-based Columbia Pacific Advisors, led a $40 million Series B round in April.
- MindMaze: A Switzerland-based neurology digital therapeutics company specializing in neurorehabilitation technologies.
- Learn To Live: A cognitive behavioral therapy-based digital tool provider designed to enhance mental health care access and engagement.
These investments demonstrate how behavioral health private equity is increasingly focused on digital solutions that improve patient access, engagement, and outcomes while addressing key challenges in care delivery.
Concord’s Vision for Behavioral Health Investment
James Olsen, founder and managing partner at Concord Health Partners, emphasized the firm’s confidence in the long-term potential of the sector:
“Broadly speaking, we see a very significant opportunity set. Behavioral health is an attractive investment area given the rising needs and our alignment with leading providers and payers who are focused on innovative technologies and solutions. It’s a great fit for us.”
Olsen highlighted Iris Telehealth and Learn To Live as prime examples of the fund’s approach, which reflects the growing trend of behavioral health private equity targeting companies that combine innovation with measurable outcomes.
A Fund Three Times the Size of Its Predecessor
The Concord Innovation Fund II is 300% larger than Concord’s inaugural fund, which closed in 2019. It includes more than 50 limited partners, including family offices, endowments, institutional investors, payers, and health care organizations such as the American Hospital Association.
“Concord has quickly proven its ability to source and execute on investment opportunities across the continuum of care,” said Rick Pollack, president and CEO of the AHA.
The fund’s size and diversified investor base reflect a broader confidence in behavioral health private equity as a compelling avenue for growth-stage investment.
Behavioral Health Deal Activity: Trends and Insights
While overall dealmaking in behavioral health has slowed slightly compared to the banner year of 2021, private equity-backed transactions remain resilient. According to The Braff Group, 102 behavioral health deals were tracked through the first half of the year—about 20% fewer than the same period last year.
However, private equity activity has been more stable:
“While down, sponsored transactions are running only 11.4% behind last year. Platform deals are down 28.6%, while follow-on deals are only 5.6% behind 2021.”
The autism treatment space has been a bright spot, with deal volume rising 15% compared to 2021. These trends demonstrate that behavioral health private equity is still actively seeking opportunities, particularly in areas with high unmet needs and scalable technology solutions.
The Future of Behavioral Health Investment
Concord Health Partners’ Concord Innovation Fund II underscores the ongoing interest of behavioral health private equity in growth-stage companies that leverage technology to improve access, outcomes, and cost efficiency. Early investments like Iris Telehealth, Learn To Live, and MindMaze illustrate how capital is being deployed to foster patient-focused innovation.
As demand for mental health services continues to grow across the United States and globally, behavioral health private equity is likely to play a central role in supporting companies that can bridge gaps in care access and engagement, while offering attractive opportunities for investors.
Funds like Concord Innovation Fund II are well-positioned to lead the next wave of innovation in behavioral health, driving better outcomes for patients and strong returns for investors, reaffirming the appeal of behavioral health private equity in today’s market.
