Key Takeaways
- • Healthcare private equity deal value reached a record $191 billion in 2025, surpassing the previous high of $121 billion set in 2021, with 445 announced buyouts marking the second-highest annual volume on record.
- • Large deals exceeding $1 billion drove record valuations, with exit activity surging to $156 billion in 2025 (up from $54 billion in 2024), driven by a sharp increase in sponsor-to-sponsor transactions and more than 40 exits clearing the $1 billion threshold compared to only 16 in 2024.
- • Medtech segment showed outsized growth since 2020, with deal value nearly doubling from 2024 to 2025 to $33 billion and volume growing nearly 20% to approximately 88 deals.
- • Provider and biopharma segments remain the largest market segments, with healthcare IT activity serving as a key driver within these verticals, while deal volume expanded across all deal sizes.
- • Record dry powder levels and a growing cohort of sponsor-owned assets reaching fund maturity create structural tailwinds for sustained activity into 2026, despite a temporary second-quarter tariff-related pause in deal flow.
Summary
Healthcare private equity delivered exceptional performance in 2025, with the sector marking a significant recovery and expansion from prior-year levels. According to Bain & Company's 2026 Global Healthcare Private Equity Report, disclosed deal value exceeded an estimated $191 billion, setting a new all-time record and surpassing the previous peak established in 2021. The achievement underscores a broad-based resurgence in PE healthcare investing following pandemic-era volatility. Investor appetite, despite a temporary slowdown in the second quarter related to tariff uncertainty, remained robust throughout the year, with 445 announced buyouts representing the second-highest annual transaction count on record.
The record valuation was propelled primarily by a sharp increase in large transactions. Deals exceeding $1 billion in disclosed value drove the bulk of the market recovery, with transaction volume also expanding across all deal size categories. This bifurcated growth pattern—dominated by mega-deals but supported by consistent activity across smaller segments—suggests institutional dry powder deployment remained well-distributed across fund sizes and deployment strategies.
Exit activity experienced a particularly dramatic rebound in 2025, reflecting a maturation cycle in the sponsor-owned asset base and favorable market conditions for liquidity events. Exit value surged to approximately $156 billion, a near tripling from $54 billion in 2024, while exit volume ranked third all-time historically. The leap was driven by sponsor-to-sponsor transactions rebounding from post-Covid lows, indicating secondary market depth and healthy asset valuations. In 2025, more than 40 exits exceeded $1 billion in disclosed value—more than double the 16 exits exceeding this threshold in 2024—demonstrating robust pricing discipline and strong buyer competition.
Provider services and biopharma remain the largest market segments within healthcare PE, with healthcare IT activity serving as a significant subcategory within these verticals. Medtech has emerged as the sector's standout performer, with deal value nearly doubling year-over-year to $33 billion and deal volume growing approximately 20% to 88 transactions. This outsized growth trajectory for medtech since 2020 suggests sustained investor conviction in the segment's defensive characteristics and operational scaling opportunities.
Market fundamentals signal continued momentum into 2026. High levels of dry powder available for deployment and a large cohort of sponsor-owned assets approaching the end of their fund lives create structural support for continued deal activity. These dynamics, combined with demonstrated success in executing large transactions and accessing multiple exit pathways, position the healthcare PE market for sustained elevated activity in the coming year.
The record valuation was propelled primarily by a sharp increase in large transactions. Deals exceeding $1 billion in disclosed value drove the bulk of the market recovery, with transaction volume also expanding across all deal size categories. This bifurcated growth pattern—dominated by mega-deals but supported by consistent activity across smaller segments—suggests institutional dry powder deployment remained well-distributed across fund sizes and deployment strategies.
Exit activity experienced a particularly dramatic rebound in 2025, reflecting a maturation cycle in the sponsor-owned asset base and favorable market conditions for liquidity events. Exit value surged to approximately $156 billion, a near tripling from $54 billion in 2024, while exit volume ranked third all-time historically. The leap was driven by sponsor-to-sponsor transactions rebounding from post-Covid lows, indicating secondary market depth and healthy asset valuations. In 2025, more than 40 exits exceeded $1 billion in disclosed value—more than double the 16 exits exceeding this threshold in 2024—demonstrating robust pricing discipline and strong buyer competition.
Provider services and biopharma remain the largest market segments within healthcare PE, with healthcare IT activity serving as a significant subcategory within these verticals. Medtech has emerged as the sector's standout performer, with deal value nearly doubling year-over-year to $33 billion and deal volume growing approximately 20% to 88 transactions. This outsized growth trajectory for medtech since 2020 suggests sustained investor conviction in the segment's defensive characteristics and operational scaling opportunities.
Market fundamentals signal continued momentum into 2026. High levels of dry powder available for deployment and a large cohort of sponsor-owned assets approaching the end of their fund lives create structural support for continued deal activity. These dynamics, combined with demonstrated success in executing large transactions and accessing multiple exit pathways, position the healthcare PE market for sustained elevated activity in the coming year.
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