Global investment firm Carlyle Group Inc. (Nasdaq: CG) is making headlines with its reported acquisition of behavioral health company Psychiatric Medical Care. This move marks Carlyle’s foray into the behavioral health sector, adding to its diverse portfolio of investments. With past platforms like Newport Academy and Odyssey Behavioral Healthcare, Carlyle has proven its interest in the healthcare industry. As of March 31, 2025, Carlyle boasted an impressive $453 billion of assets under management, showcasing its financial strength and stability.
On the other hand, Psychiatric Medical Care is a reputable behavioral health management company known for its partnerships with hospitals and health systems. With a network spanning over 300 hospitals and health systems in more than 35 states, Psychiatric Medical Care has established itself as a key player in the industry.
According to a report from Axios, Carlyle is set to acquire Psychiatric Medical Care from Consonance Capital for a significant 20 times EBITDA multiple. This strategic move comes after Consonance Capital Partners completed a recapitalization of Psychiatric Medical Care in late 2018. Despite requests for comment from both Carlyle and Psychiatric Medical Care by Behavioral Health Business, no responses have been received as of now.
The potential deal between Carlyle and Psychiatric Medical Care reportedly took shape at the McDermott Healthcare Private Equity and Finance Conference earlier this year, highlighting the importance of networking and industry events in facilitating such transactions. Recent data from M&A advisory firm The Braff Group suggests that healthcare services dealmaking, including in the behavioral health sector, is on the rise in 2025 compared to previous years.
In addition to the Carlyle-Psychiatric Medical Care deal, other notable transactions in the behavioral health space include Crossroads Treatment Centers acquiring Family Health Services, Lyra Health’s acquisition of Bend Health, and NexPhase Capital’s purchase of Empower Community Care. These deals, all announced or completed in July, underscore the growing interest and investment in behavioral health services.
Industry insiders believe that despite the visible uptick in M&A activity, there is even more happening behind the scenes. Peter Lynch, associate partner at Stoneridge Partners, emphasized that there is a significant amount of activity in the market, with some deals potentially flying under the radar due to their smaller scale. As the behavioral health sector continues to evolve and attract investment, the landscape is ripe for further growth and innovation.
