What's Happening?
Healthcare private equity achieved a record $190 billion in deal value in 2025, according to a report by Bain & Company. This surge was driven by a significant increase in large deals, particularly in the biopharma and provider segments, fueled by healthcare IT activity. The report highlights that North America experienced a resurgence in large deals, with 26 transactions exceeding $1 billion by November 2025. Provider IT and services were key growth drivers, with health IT deal value doubling to an estimated $32 billion. Medtech also saw substantial growth, with deal value nearly doubling to $33 billion. The report suggests that health IT remains a priority due to increased billing complexity and the need for workflow digitization and interoperability.
Why It's Important?
The record-breaking performance of healthcare private equity in 2025 underscores the growing importance of health IT and medtech in the industry. This trend reflects a shift towards digital solutions and advanced technologies in healthcare, which can lead to improved patient outcomes and operational efficiencies. The increased investment in these areas suggests a strong confidence in their potential for return on investment. For stakeholders, this means a competitive landscape where innovation and strategic investments are crucial for success. The focus on health IT and medtech also indicates a broader industry trend towards value-based care and integrated healthcare solutions.
What's Next?
Looking ahead, Bain & Company predicts continued robust activity in healthcare private equity, driven by public-to-private and carve-out transactions. Investors are expected to focus on value-creation strategies to deliver outsized returns amidst intense competition for assets. The report suggests that companies adopting integrated or value-based care models, and those partnering with ancillary services, will find attractive opportunities. As portfolios mature and exit pipelines build, the healthcare sector is poised for further growth and transformation, with health IT and medtech at the forefront.
