According to the Global Healthcare Private Equity Report 2026, published by Bain & Company, the global value of private equity deals in the healthcare sector reached a new record in 2025, with an estimated 191 billion dollars in transactions, surpassing the previous all-time high recorded in 2021.
The report notes that this increase was driven mainly by a sharp rise in deals exceeding 1 billion dollars, which offset the second-quarter slowdown caused by tariffs in North America and Asia-Pacific. Transaction volume also remained strong, with 445 announced acquisitions, the second-highest figure on record.
At the same time, divestments rebounded sharply to reach 156 billion dollars — the second-highest level in history — compared to 54 billion dollars in 2024, thanks to the return of sponsor-to-sponsor transactions following the post-pandemic lows.
According to Cira Cuberes, partner at Bain & Company, “The private equity market in healthcare delivered record performance last year, with a major increase in large-scale transactions and growth across all segments, led by biopharma and providers, and driven by activity in medtech. We also observed a strong recovery in divestment value following recent lows, signaling the return of exit activity as sponsors restart sales processes for strategic assets. Everything points to a very dynamic 2026, supported by high liquidity levels and a growing number of sponsor-owned assets approaching the end of their investment cycle.”
Sponsor-to-sponsor deals on the rise
The analysis highlights that, following the slowdown seen in 2023 and 2024, sponsor-to-sponsor transactions returned strongly in 2025, reaching record highs in both volume and value. More than 150 transactions are expected, with an estimated value exceeding 120 billion dollars.
Bain & Company also emphasized the increase in average deal size: more than 30 transactions exceeded 1 billion dollars, compared to just eight in 2024. In addition, public-to-private deals and carve-outs continue gaining prominence as alternative opportunities for investors, showing sustained growth since 2023.
Recovery after the second-quarter decline
The report indicates that global growth was sustained thanks to consistent activity in Europe and the recovery of North America and Asia-Pacific after the second-quarter slowdown. Transaction volume increased 39% between the second and third quarters, and the second half of the year closed 7% above the first half.
North America: momentum from large deals
According to the study, the region managed to overcome the second-quarter slowdown thanks to the rise in large-scale transactions. Through November 2025, 26 deals exceeding 1 billion dollars were recorded, compared to 14 during all of 2024, and more than 70% were sponsor-to-sponsor.
Total deal volume grew slightly compared to the previous year, although it remains below the historical peak reached in 2021. In divestments, 2025 closed with an estimated value of 90 billion dollars, well above the 35 billion dollars recorded in 2024.
Europe: biopharma leadership and major transactions
The analysis indicates that in Europe, deal value is expected to double compared to the previous year, reaching approximately 59 billion dollars. The biopharma sector led this growth, accounting for the five largest transactions in the region and representing 65% of total value.
Large-scale deals also returned strongly: around 15 transactions exceeding 1 billion dollars were recorded in 2025, compared to only three in 2023 and four in 2024. Total transaction volume also increased, surpassing the 2024 record and maintaining the upward trend that began in 2022.
Divestments rebounded significantly to approximately 53 billion dollars following the sharp decline of the previous year, driven mainly by large sponsor-to-sponsor transactions.
Asia-Pacific: broad-based strength
The report states that deal value in Asia-Pacific reached a record in 2025, surpassing the 2021 peak by more than 30% despite the second-quarter slowdown. The biopharma and provider segments remain the main drivers of healthcare private equity in the region, although medtech and healthcare IT also posted significant growth.
Japan, India, and Australia-New Zealand showed notable gains compared to 2024, while China doubled its previous year’s performance in both volume and value, although overall activity remains below historical highs.
Biopharma sector: concentration of value
The study notes that transaction value in the biopharma segment increased to around 80 billion dollars in 2025, up from 55 billion dollars in 2024, while volume is expected to grow nearly 20%, surpassing 130 deals. Since 2020, this sector has represented approximately 30% of total deal volume and at least 22% of global transaction value.
Europe led much of this momentum, with transaction volume rising nearly 40% and value increasing 70% compared to 2024. In North America, growth was more moderate: value increased 20%, while volume remained stable.
Providers: growth driven by technology
According to the analysis, transaction value in providers and related services rose 57% to approximately 62 billion dollars, while volume remained stable, reflecting larger deal sizes. Growth was led by healthcare IT and provider services, although investment focused exclusively on providers did not accelerate at the same pace.
Investors concentrated on technology-enabled assets such as analytics, workforce optimization, and platform solutions. Within this segment, healthcare IT deal value doubled in 2025 to an estimated 32 billion dollars.
Medtech: momentum in the post-Covid era
The report highlights that transaction value in medtech nearly doubled compared to the previous year, reaching approximately 33 billion dollars, while volume increased nearly 20% to around 88 transactions. The sector is gaining traction as investors identify opportunities to apply proven value-creation strategies focused on revenue growth, margin expansion, and multiple expansion while managing downside risks.
Three key trends for 2026
The analysis points out that healthcare technology has maintained an upward trend in both volume and value since 2023, reflecting sustained investor interest. Those focusing on specific value-creation levers — such as developing comprehensive pricing and packaging strategies or pursuing large-scale mergers and acquisitions to build synergistic platforms — will be better positioned to differentiate their offerings and achieve stronger exits in an environment of high valuations and intense competition.
In the pharmaceutical services market, despite historically being an attractive and large segment, recent challenges have led some investors to adopt a more cautious stance. Others have opted for a selective approach, prioritizing premium assets with strong operational improvement potential and business models more resilient to market volatility.
Meanwhile, although activity remains below peak levels from several years ago, interest in physician groups persists among U.S. investors. Leading platforms are differentiating themselves by moving beyond the traditional buy-and-build model toward integrated, clinician-focused approaches that improve quality of care. Those investing in next-generation models based on attractive trends such as pharmaceutical exposure or value-based care are expected to find compelling opportunities.
“We are optimistic about the evolution of the healthcare private equity market this year, especially because investor confidence in the market’s fundamentals has remained strong despite the difficulties experienced last spring. The strength of public-to-private deals and carve-outs, together with the return of sponsor-to-sponsor transactions, reinforces expectations of intense activity. Looking ahead, investors will need to clearly define their value-creation strategies to achieve standout returns in an environment where competition for assets remains extremely high,” concluded Cira Cuberes, partner at Bain & Company.
