Private equity dealmaking in the industry reached new highs last year, in large part due to healthcare IT investment.
Even amid regulatory upheaval, global healthcare private equity (PE) activity surged to record highs in 2025, according to new analysis.
Deal value reached $191 billion last year, surpassing the previous peak reached in 2021, as investors returned to large-scale transactions and dealmaking accelerated across multiple segments, Bain & Company’s report found.
Following the first quarter in which deal volume increased 21% relative to the same period in 2024, the second quarter brought a tariff-related slowdown in North America. However, the healthcare PE market regained momentum through the rest of the year as sponsors pursued larger deals and reactivated pipelines that had been on hold. Deal volume resulted in an estimated 445 buyouts, representing the second-most on record.
“Healthcare private equity delivered a record performance last year as large deals spiked and deal count rose across all tiers, with the biopharma and provider segments leading the way, driven by healthcare IT activity,” Kara Murphy, partner at Bain & Company and co-leader of its healthcare private equity team, said in a statement.
Biopharma ($80 billion) and provider ($62 billion) transactions accounted for the largest share of total deal value. While biopharma activity saw investors focus on contract development and manufacturing organizations, provider investors set their sights on technology-enabled assets like analytics, platform solutions, and workforce optimization.
Though it wasn’t the primary contributor to overall deal value, medtech experienced significant gains, nearly doubling the previous year’s deal value to reach an estimated $33 billion. “The sector is gaining momentum as investors see opportunities to deploy proven value-creation playbooks: focusing on revenue growth, margin expansion, and multiple expansion, while managing downside risk,” Bain wrote.
The upward trend extended beyond acquisitions. Exit value improved meaningfully from $54 billion in 2024 to $156 billion in 2025 as sponsor-to-sponsor deals bounced back, with more than 30 such deals exceeding $1 billion last year, compared to eight in 2024. “We also saw a strong rebound in exit value from recent lows, signaling the return of exit activity as sponsors re-launch sale processes for high-conviction assets,” Murphy said.
Looking ahead, Bain expects dealmaking momentum to continue this year. Healthcare IT is expected to remain a focal point, particularly platforms tied to automation, data analytics, revenue cycle management, and clinical workflow optimization, as organizations look for ways to improve efficiency and margins.
“The stage is set for an active 2026 due to high levels of dry powder and a growing cohort of sponsor-owned assets reaching the end of their fund lives,” Murphy said.
Jay Asser is the CEO editor for HealthLeaders.
KEY TAKEAWAYS
Healthcare private equity deal value hit $191 billion globally in 2025, with 445 buyouts recorded despite regulatory and tariff headwinds.
Biopharma and providers led deal value, while healthcare IT drove investment focus across sectors.
Exit activity rebounded significantly, setting the stage for continued momentum in 2026.