#United States #New York #Bain Company #Biopharma #healthcare equity

A Record-Breaking Year for Global Healthcare Private Equity

The year 2025 marked a historic milestone for private equity in the healthcare sector, with an astounding estimated deal value of $191 billion. This figure eclipses the previous peak reached in 2021, thanks to a significant rise in larger transactions and robust investor activity despite earlier slowdowns caused by tariffs. Bain & Company's Global Healthcare Private Equity Report 2026 highlights the dynamics behind this booming market.

Key Drivers of Growth

The surge in deal value was driven by a notable increase in transactions exceeding $1 billion, showcasing the strength of the healthcare private equity landscape. In total, investors completed 445 buyouts last year, making it the second-highest number recorded. Furthermore, exit values rebounded dramatically to an expected $156 billion, signifying a resurgence in sponsor-to-sponsor deals that had previously dipped following the COVID-19 pandemic. According to Kara Murphy, a partner at Bain & Company and co-leader of its Healthcare Private Equity team, this record performance underscores the growing investor confidence in the healthcare market driven mainly by pharmaceutical and provider services, particularly in healthcare IT.

Regional Performance Insights

North America

In North America, the private equity scene demonstrated resilience as investors capitalized on larger transactions. Specifically, there were 26 deals exceeding the $1 billion mark reported by November 2025, compared to just 14 throughout 2024. Overall deal volume in North America slightly improved, achieving an expected $90 billion in exit activity, significantly higher than the previous year's $35 billion.

Europe

Across the Atlantic, European deal-making was notably led by biopharmaceuticals, with total deal value on track to double year-over-year, reaching approximately $59 billion. Notably, biopharma deals accounted for 65% of that total, showcasing a strong recovery and an upward trajectory in the healthcare's private equity landscape.

Asia-Pacific

Asia-Pacific also saw impressive growth, setting a record for deal value in 2025 that surpassed previous highs by over 30%. The success in this region is largely attributed to significant activities in the biopharma and provider segments, with emerging growth noted in medtech and healthcare IT. Japan, India, and Australia reported substantial gains, whereas Greater China's performance more than doubled compared to 2024, although total activity levels continue to trail historical highs.

Sector Highlights

Biopharma

The biopharma sector took center stage, with deal values climbing to an estimated $80 billion, illustrating a continued investor interest in pharmaceutical innovations. In Europe specifically, deal volume surged nearly 40% since 2024, while North America reported a more muted 20% increase in value but with flat volume relative to 2024.

Provider Services

Provider and related services also saw remarkable growth, with deal value surging by 57% to reach about $62 billion over the previous year, primarily driven by healthcare IT advancements and service-related investments. Investors increasingly focus on technology-integrated assets that promise high returns.

Medtech

The medtech industry showcased strong post-pandemic growth, with deal value nearly doubling to an estimate of $33 billion, as investment opportunities in this sector become more attractive. With savvy approaches to revenue growth and risk management, medtech stands as a pivotal focus for investors moving forward.

Looking Ahead: Trends for 2026

Continued Focus on Healthcare IT

Investor interest in healthcare IT remains strong. The upward trend suggests a healthy appetite for opportunistic value creation as investors hone in on strategic levers to distinguish their bids in a competitive marketplace.

Selective Approaches in Pharma Services

While some investors have paused engagement due to recent sector challenges, a more selective approach prioritizing high-potential assets could lead to fruitful investment opportunities in the pharma services landscape.

Innovative Models in Physician Groups

Despite being below peak levels, US investor interest in physician groups persists. Emerging business models focus on integrated care frameworks that enhance quality and provide strong returns—pointing toward further innovations in this space.

In conclusion, with high levels of available capital and an expanding array of assets requiring management, the outlook for healthcare private equity in 2026 appears robust. Nirad Jain, another partner at Bain & Company, expresses optimism about ongoing investor confidence in market fundamentals despite headwinds. As competition remains fierce, success will hinge on the conviction behind value-creation strategies.