Global healthcare private equity (PE) set a new record in 2025 with an estimated $191 billion in deal value, surpassing the previous peak of 2021. The surge in deal value was propelled by a sharp increase in deals exceeding $1 billion and offset second-quarter tariff-related slowdowns in North America and Asia-Pacific. Deal volume was similarly robust, with investors announcing 445 buyouts, the second-most on record. Exit value also soared back to an expected $156 billion, the second highest ever, up from $54 billion in 2024, as sponsor-to-sponsor deals rebounded from post-pandemic lows.
These are among the findings of 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 deals surged; public markets rising as an opportunity
After a slowdown in 2023 and 2024, sponsor-to-sponsor deals continue to surge as a buyout deal type, signaling the healthcare PE market’s strength. Both volume and value hit record highs in 2025, with more than 150 sponsor-to-sponsor deals expected and more than $120 billion in estimated value. Bain saw higher average deal value as well, with more than 30 sponsor-to-sponsor deals exceeding $1 billion for 2025, a sharp rise from the eight sponsor-to-sponsor deals greater than $1 billion in 2024. Additionally, public-to-private deals and carve-outs continue to present alternative paths forward for investors, as both have grown on an absolute basis since 2023.
Resurgent performance overcame a second-quarter pullback
Global growth was propelled by Europe’s sustained activity, as well as a resurgence in North America and Asia-Pacific after second-quarter tariff-related pullbacks in those regions. Global deal volume jumped 39% from the second quarter to the third quarter, and the second half finished an estimated 7% higher than the first half.
Regional Breakouts: North America, Europe, and Asia-Pacific
Large transactions propelled North America dealmaking
North America overcame the second-quarter pullback mainly due to an uptick in large deals, with 26 transactions exceeding $1 billion as of November 2025 compared to 14 in full-year 2024. Of these deals, more than 70% were sponsor-to-sponsor sales. Total North American deal volumes were slightly up versus 2024 but remain below the previous high set in 2021. Exit activity in 2025 rose to an expected $90 billion, well above 2024’s $35 billion.
European dealmaking fueled by biopharma and provider deals
In Europe, deal value is on pace to double year-over-year to an estimated $59 billion. Biopharma drove the surge, making up the region’s top five deals that accounted for 65% of total deal value.
Large-cap activity reemerged, reflected by some 15 deals exceeding $1 billion in 2025 compared with just three and four deals topping $1 billion in 2023 and 2024, respectively. Deal count similarly grew, outpacing 2024’s high-water mark and continuing an upward trend begun in 2022. Exit activity also rose substantially, to an estimated $53 billion, after a steep drop in 2024, led by large sponsor-to-sponsor transactions.
Asia-Pacific showed broad strength across markets
Deal value in Asia-Pacific set a record in 2025, exceeding 2021’s high by more than 30% despite the second-quarter slowdown. The biopharma and provider segments continue to drive most of the region’s healthcare PE market, but medtech and healthcare IT experienced growth as well. Japan, India, and Australia and New Zealand experienced notable growth over 2024, while Greater China more than doubled its 2024 performance in terms of both volume and value, although overall activity in China remains below recent historical highs.
Sector Spotlights: Biopharma, Provider Services and Medtech
Biopharma commanding a large share of deal value
Biopharma deal value rose to an estimated $80 billion in 2025 from $55 billion in 2024, and volume is expected to increase nearly 20% to more than 130 deals. Investor focus on this sector continued, as it has accounted for about 30% of overall deal volume and at least 22% of deal value each year since 2020.
Europe drove much of this momentum, with a nearly 40% increase in deal volume and a 70% increase in deal value since 2024. Growth in North America was more mixed, with value up 20% and volume flat relative to 2024.
Provider deals spurred by services and IT
Provider and related services deal value jumped 57% over last year, to an estimated $62 billion in 2025, while volume remained flat, reflecting more high-value deals. Provider IT and services drove growth, but pure provider investment did not experience the same acceleration. Investors homed in on technology-enabled assets such as analytics, workforce optimization, and platform solutions. Healthcare IT deal value within the provider segment doubled in 2025, to an estimated $32 billion.
Medtech leads the pack in post-Covid growth
Medtech deal value nearly doubled over the prior year to an estimated $33 billion, and volume increased nearly 20% to an estimated 88 deals. 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.
Three Healthcare PE Trends to Watch in 2026
- Healthcare IT is ripe for opportunistic value creation. Buyout deal volume and value in this segment have remained on an upward trend since 2023, indicating continued investor interest. Investors who stay focused on a few targeted value-creation levers—such as developing a comprehensive pricing-and-packaging strategy or pursuing large-scale M&A to build synergistic platforms—are best positioned to distinguish their bids and ultimately deliver superior exit outcomes amidst consistently high valuations and competitive deal dynamics.
Reshaping the pharma services investment landscape
While pharma services has long been a sizable and attractive space, recent headwinds have pushed some investors to the sidelines. But others have leaned in by deploying a more selective approach, prioritizing premium and high-potential assets that have room for operational improvement, as well as business models insulated from broader instability.
- Physician groups innovate on traditional models. While activity remains below its peak of a few years ago, interest in physician groups persists among US investors. Leading platforms are distinguishing themselves via moves beyond traditional buy-and-build models and toward integrated, clinician-centric approaches that elevate care quality. Those investing in next-generation models built around attractive themes such as pharma exposure or value-based care will find attractive opportunities.
“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.”