The Tamesis
Europe, North America and Asia-Pacific led the surge in healthcare private equity.
Global healthcare private equity (PE) deal value will reach $191 billion in 2025, surpassing its 2021 peak, driven by more than $1 billion in deals despite a tariff-related slowdown in the second quarter, according to Bain & Company Market Insights.
Acquisition deal volume totaled 445, the second highest ever, supported by strong sponsor-to-sponsor activity, while exit value reached $156b.
In 2025, deal volume and value between sponsors hit record highs, with more than 150 deals valued at more than $12 billion, including approximately 30 deals exceeding $1 billion.
Public-private transactions and spin-offs continue to provide alternative investment avenues, with both growing in absolute value since 2023.
Europe led global growth, driven by biopharma and supplier deals, with regional deal value doubling to $59 billion by 2025 and recording 15 deals exceeding $1 billion.
The number of deals in the region increased by almost 40%, with exit value estimated at $53b, on the back of large sponsor-to-sponsor deals.
As of November 2025, North America has recorded 26 deals exceeding $1 billion, 70% of which were attributed to sponsor-to-sponsor sales.
Overall transaction volume increased slightly compared to 2024 but remains below the all-time high set in 2021, while exit activity also rose to $90b.
Despite a slowdown in the second quarter, the Asia-Pacific region was still up more than 30% from its 2021 record, as the biopharmaceutical and provider sectors continued to drive the majority of healthcare private equity activity, along with medical technology and healthcare IT.
Japan, India, Australia and New Zealand recorded significant growth in 2024, while Greater China more than doubled transaction volume and value compared to 2024, although activity remained below recent historical highs.
Biopharmaceuticals account for the largest share of deal value, reaching $80 billion by 2025, up from $55 billion in 2024, with deal volume expected to grow nearly 20% to more than 130 deals.
Since 2020, the industry has accounted for approximately 30% of total transaction volume and at least 22% annually.
The value of providers and related services transactions is expected to climb to $62 billion by 2025, with transaction volumes remaining flat due to an influx of high-value deals.
The value of healthcare IT transactions within the provider space will double by 2025, reaching an estimated $32 billion.
The report states that healthcare IT is ripe for opportunistic value creation, with acquisition deal volume and value continuing to grow since 2023, reflecting continued investor interest.
Pharmaceutical services investments have also become more discerning, with investors focusing on high-quality assets with the potential for operational improvements.
Physician groups are innovating on traditional models as leading platforms shift from buy-and-build strategies to integrated clinician-centric approaches to improve quality of care.
“Going forward, investors will need to have confidence in their value creation strategies to deliver outsized returns as competition for assets remains fierce,” said Nirad Jain, partner and co-head of Bain & Company’s healthcare private equity team.
