Health care and infrastructure are emerging as favorites. Discover valuation trends and growth drivers and why they’re attracting capital.
As we step into 2026, private equity firms face a market defined by cautious optimism. Interest rates are stabilizing, dry powder remains abundant, and dealmakers are sharpening their focus on sectors combining growth potential with defensive characteristics.
Two sectors are emerging as clear favorites: health care and infrastructure. Here’s why they’re attracting capital, and what valuation trends and growth drivers to know.
Health care: A defensive growth engine
Why it’s attractive
Health care continues to be a cornerstone for private equity due to its resilience against economic cycles and demographic tailwinds. Aging populations, chronic disease prevalence, and the shift toward outpatient care are fueling demand.
Key growth drivers
- Demographics — The U.S. population over 65 will surpass 60 million by 2030, driving utilization.
- Value-based care — Providers are investing in tech-enabled solutions to improve outcomes and reduce costs.
- Fragmentation — Many sub-sectors (e.g., behavioral health, specialty clinics) remain highly fragmented, creating roll-up opportunities.
Valuation trends
Multiples for platform assets in specialty care and behavioral health remain strong, often in the 12x–14x EBITDA range, while smaller add-ons trade closer to 8x–10x. Investors are paying premiums for businesses with tech integration and payer relationships.
Infrastructure: Building the backbone of growth
Why it’s attractive
Infrastructure is no longer just about roads and bridges — it’s about enabling the digital economy and energy transition. Private equity sees this as a long-term play with predictable cash flows.
Key growth drivers
- Energy transition — Investments in renewable energy infrastructure and grid modernization are accelerating.
- Digital connectivity — Fiber deployment and data center construction are booming as demand for bandwidth surges.
- Government spending — Public-private partnerships and federal funding (e.g., the Infrastructure Investment and Jobs Act) are creating tailwinds for contractors and service providers.
Valuation trends
Core infrastructure assets with contracted revenues often command 10x–12x EBITDA, while specialty service providers (e.g., utility contractors) trade in the 7x–9x range. Premiums for businesses with recurring maintenance revenue and strong safety records.
What this means for dealmakers
Both sectors offer a blend of defensive characteristics and growth upside, making them ideal for private equity firms seeking stability in uncertain times. Expect fierce competition for quality assets, with operational value creation and tech enablement as key differentiators.
How CLA can help private equity with deals
2026 is not about chasing the next shiny object, it’s about doubling down on sectors combining resilience, scalability, and long-term relevance. Health care and infrastructure check all those boxes. At CLA, we work with investors to leverage our industry specialization, transactional experience, and operational advisory capabilities to help drive value creation.