New Delhi: 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, a report showed on Thursday. 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, said the report by Bain & Company.
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. “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, signalling 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,” Murphy added. Deal value in Asia-Pacific set a record in 2025, exceeding 2021’s high by more than 30 per cent 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, said the report.
Biopharma deal value rose to an estimated $80 billion in 2025 from $55 billion in 2024, and volume is expected to increase nearly 20 per cent to more than 130 deals. Investor focus on this sector continued, as it has accounted for about 30 per cent of overall deal volume and at least 22 per cent of deal value each year since 2020. “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.
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