Global healthcare private equity records $191 billion deal value in 2025, says Bain report

Global healthcare private equity recorded an estimated $191 billion in deal value in 2025, surpassing the previous high reached in 2021. The increase was driven by a rise in transactions exceeding $1 billion, which offset a slowdown linked to tariffs in the second quarter across North America and Asia-Pacific. Investors announced 445 buyouts during the year, marking the second-highest deal volume on record. Exit value reached an estimated $156 billion, rising from $54 billion in 2024, as sponsor-to-sponsor transactions increased after post-pandemic declines.

The findings are detailed in Bain & Company’s Global Healthcare Private Equity Report 2026, published today.

“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,” said Kara Murphy, partner at Bain & Company and co-leader of its Healthcare Private Equity team. “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. 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.”

Sponsor-to-sponsor transactions increased following a slowdown in 2023 and 2024. Both volume and value reached record levels in 2025, with more than 150 such deals expected and estimated value exceeding $120 billion. Bain reported higher average deal values, with more than 30 sponsor-to-sponsor transactions above $1 billion in 2025, compared with eight deals above that threshold in 2024. Public-to-private transactions and carve-outs also increased in absolute terms compared with 2023.

Growth in dealmaking was supported by activity in Europe and a recovery in North America and Asia-Pacific following second-quarter pullbacks. Global deal volume rose 39 per cent from the second to the third quarter, and the second half of the year ended an estimated 7 per cent higher than the first half.

In North America, dealmaking recovered primarily due to an increase in large transactions. As of November 2025, 26 deals exceeded $1 billion, compared with 14 across the full year in 2024. More than 70 per cent of these transactions were sponsor-to-sponsor deals. Overall deal volume rose slightly compared with 2024 but remained below the level recorded in 2021. Exit value in the region reached an estimated $90 billion, compared with $35 billion in 2024.

European deal value is expected to reach an estimated $59 billion, representing a year-on-year increase. Biopharma accounted for the region’s five largest transactions, representing 65 per cent of total deal value. Transactions exceeding $1 billion increased to around 15 in 2025, compared with three in 2023 and four in 2024. Deal volume exceeded the level recorded in 2024, continuing growth that began in 2022. Exit value in Europe rose to an estimated $53 billion, following a decline in 2024, supported by sponsor-to-sponsor transactions.

Asia-Pacific recorded its highest healthcare private equity deal value in 2025, exceeding the level reached in 2021 by more than 30 per cent, despite a second-quarter slowdown. Biopharma and provider segments accounted for most activity, while medtech and healthcare IT also recorded growth. Japan, India, Australia, and New Zealand reported increases compared with 2024. Greater China more than doubled its 2024 deal volume and value, although overall activity remained below previous levels.

Biopharma deal value increased to an estimated $80 billion in 2025 from $55 billion in 2024, with deal volume expected to exceed 130 transactions. Since 2020, the sector has accounted for around 30 per cent of deal volume and at least 22 per cent of deal value each year. Europe recorded an increase in deal volume of nearly 40 per cent and a rise in deal value of 70 per cent compared with 2024. In North America, deal value increased by 20 per cent, while volume remained unchanged.

Provider and related services deal value rose to an estimated $62 billion in 2025, reflecting a year-on-year increase of 57 per cent, while deal volume remained unchanged. Growth was driven by provider IT and services, while direct provider investments showed less change. Healthcare IT deal value within the provider segment reached an estimated $32 billion.

Medtech deal value reached an estimated $33 billion in 2025, compared with the previous year, while deal volume increased to an estimated 88 transactions. Investor activity in the sector focused on revenue growth, margin expansion, and valuation outcomes, alongside downside risk management.

The report identified healthcare IT, pharma services, and physician groups as areas to watch in 2026. Healthcare IT buyout volume and value have increased since 2023. In pharma services, investors have applied selective approaches, focusing on assets with operational improvement potential and business models less exposed to volatility. In physician groups, investor interest continued, with activity centred on models extending beyond traditional acquisition strategies and incorporating care delivery approaches.

“We are optimistic about the outlook for healthcare private equity this year, particularly given investor confidence in market fundamentals remained high in the face of headwinds last spring,” said Nirad Jain, partner at Bain & Company and co-leader of its Healthcare Private Equity team. “Continued strength in public-to-private and carve-out transactions, along with the return of sponsor-to-sponsor activity, also point to ongoing robust activity. Looking ahead, investors will need conviction in their value-creation playbooks to deliver outsized returns as competition for assets remains intense.”