Behavioral health care has been a hot sector for investors in recent years. After slumping to just eight announced transactions in 2010, deal volume soared steadily to 40 transactions in 2015. As of this writing, the sector has recorded 40 transactions in 2016, with two weeks left in the year.

Even if no new deals surface before January 1, we expect the deal momentum to keep building through 2017, thanks to the tailwinds provided by the passage this month of the 21st Century Cures Act. The bipartisan bill, signed by President Obama, authorizes $1 billion in state grants over the next two years to address opioid abuse and other addictions.

Most of that money goes to treatment facilities, which have commanded a lot of interest. Almost half (18) of the 40 deals announced this year targeted substance abuse and addiction treatment centers or programs.

The largest deal announced this year, based on disclosed prices, was from Kohlberg & Company LLC. The private equity firm paid $180 million for The Meadows of Wickenburg, Inc., a portfolio company of American Capital since 2006.

The Meadows is largely a private-pay program providing inpatient, outpatient and intensive levels of care to patients suffering from additions or psychological trauma. In conjunction with the acquisition, Kohlberg announced the formation of Alita Care, LLC, which now serves as the parent holding company for The Meadows and Kohlberg’s existing behavioral health company, Sunspire Health, LLC.