Key Takeaways
- • PE buyers announced 135 healthcare transactions in Q3:26, roughly 33% of the 415 announced healthcare deals, according to Irving Levin Associates' LevinPro HC data.
- • PE deal volume fell from 155 transactions in Q2:26 and 190 in Q3:25, a decline of about 13% quarter over quarter and 29% year over year.
- • Disclosed PE spending totaled nearly $9.14 billion across 10 deals, led by KKR's $5.7 billion acquisition of Integer Holdings.
- • Physician Medical Groups drew the most PE interest with 53 deals (over 39% of PE activity), with dental practices accounting for 26 of them.
- • Life Sciences R&D was the second most active PE sector with 15 transactions, up from 10 in both Q2:26 and Q3:25.
Summary
Private equity firms and their portfolio companies announced 135 healthcare transactions in the third quarter of 2026, according to data captured in the LevinPro HC platform published by Irving Levin Associates. The PE buyers accounted for approximately 33% of the 415 announced healthcare deals in the quarter. Volume declined from 155 PE transactions in the second quarter of 2026 and 190 deals in the third quarter of 2025.
Disclosed PE spending in Q3:26 totaled nearly $9.14 billion across 10 deals with a PE buyer. The largest transaction was KKR's acquisition of Integer Holdings for $5.7 billion. Plano, Texas-based Integer is one of the largest medical device outsource manufacturers in the world, serving the cardiac, neuromodulation, vascular, portable medical, advanced surgical and orthopedics markets. According to its most recent annual filing, Integer reported full-year 2025 revenue of $1.85 billion and EBITDA of nearly $292.4 million.
Physician Medical Groups (PMG) attracted the most PE interest, with 53 deal announcements, more than 39% of all PE healthcare activity. Dental practices made up nearly half of PMG acquisitions, with 26 announcements. Dermatology was the next most active PMG specialty with seven transactions, while eye care and cardiology tied for third with three each. Heartland Dental and Specialized Dental Partners were the most active PE-backed buyers, with Heartland acquiring practices in Tennessee, Nevada, Virginia and Florida and Specialized Dental Partners acquiring practices in Texas, Georgia and North Carolina.
Life Sciences R&D was the second most active PE sector, with 15 transactions, up from 10 in both Q2:26 and Q3:25. Contract development and manufacturing organizations led the subsector with eight acquisitions, followed by clinical trials with four and contract research organizations with three. Other Services, eHealth and Medical Outpatient Buildings each recorded 11 PE deals, followed by Behavioral Health Care with nine, Home Health & Hospice with seven and Medical Devices with six.
Avery Swett, Associate Editor at Irving Levin Associates, said PE activity cooled in Q3:26 but that private equity still drove roughly one-third of healthcare deals. Swett added that buyers appear more willing to hold off on marginal assets, which could set up a healthier pipeline once conditions improve. Full quarterly results are published in The Health Care M&A Report.
Disclosed PE spending in Q3:26 totaled nearly $9.14 billion across 10 deals with a PE buyer. The largest transaction was KKR's acquisition of Integer Holdings for $5.7 billion. Plano, Texas-based Integer is one of the largest medical device outsource manufacturers in the world, serving the cardiac, neuromodulation, vascular, portable medical, advanced surgical and orthopedics markets. According to its most recent annual filing, Integer reported full-year 2025 revenue of $1.85 billion and EBITDA of nearly $292.4 million.
Physician Medical Groups (PMG) attracted the most PE interest, with 53 deal announcements, more than 39% of all PE healthcare activity. Dental practices made up nearly half of PMG acquisitions, with 26 announcements. Dermatology was the next most active PMG specialty with seven transactions, while eye care and cardiology tied for third with three each. Heartland Dental and Specialized Dental Partners were the most active PE-backed buyers, with Heartland acquiring practices in Tennessee, Nevada, Virginia and Florida and Specialized Dental Partners acquiring practices in Texas, Georgia and North Carolina.
Life Sciences R&D was the second most active PE sector, with 15 transactions, up from 10 in both Q2:26 and Q3:25. Contract development and manufacturing organizations led the subsector with eight acquisitions, followed by clinical trials with four and contract research organizations with three. Other Services, eHealth and Medical Outpatient Buildings each recorded 11 PE deals, followed by Behavioral Health Care with nine, Home Health & Hospice with seven and Medical Devices with six.
Avery Swett, Associate Editor at Irving Levin Associates, said PE activity cooled in Q3:26 but that private equity still drove roughly one-third of healthcare deals. Swett added that buyers appear more willing to hold off on marginal assets, which could set up a healthier pipeline once conditions improve. Full quarterly results are published in The Health Care M&A Report.
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