Global healthcare private equity (PE) deal value soared to an estimated $115bn in 2024, marking the second-highest total on record. This surge was driven by an increase in the number of large deals, with five transactions surpassing $5bn, compared to two deals in 2023 and just one in 2022.
According to Bain & Company’s Global Healthcare Private Equity Report 2025, North America remains the largest market, accounting for 65% of global deal value, while Europe and Asia-Pacific make up 22% and 12%, respectively.
Deal volumes reportedly remained steady in relation to historical levels, with a surge of activity in North America and Europe offsetting a 49% decline in deal volume in Asia-Pacific since 2023.
The report found there are four trends reshaping healthcare PE:
Mid-market funds innovate – Mid-market healthcare funds, which have outperformed the broader market, continue to innovate and maintain buyout activity and exits since 2020. These funds raised around $59bn since 2022, a 40% increase from the previous three years. Traditionally focused on provider assets, these funds are now expanding into healthcare IT, provider services, biopharma, and medtech.
Carve-outs create value – Healthcare carve-outs, which have been steadily rising since 2010, allow public companies to improve margins and reduce complexity, while PE firms acquire undervalued assets with high potential. Amid a decline in sponsor-to-sponsor deal activity since 2022, carve-outs and public-to-sponsor deals have attracted investors seeking scalable healthcare assets.
Exit value maximisation – Healthcare PE exit volume dropped 41% in 2024 from its 2021 peak, hindered by high interest rates and misaligned buyer-seller expectations. With multiple expansions unlikely to drive returns as before, successful exits now require sellers to objectively assess asset performance and develop a clear value-creation plan. Buyers who integrate value-creation strategies into their due diligence gain an edge.
Asia-Pacific investment evolves – PE firms are expanding beyond China into other parts of Asia-Pacific, where deal value has grown at a 21% CAGR since 2016. However, deal volume dropped significantly in 2023, with a shift towards India, Japan, and South Korea, alongside increased competition from strategic players. India’s growing healthcare demand and economic growth make it an appealing alternative to China, while Japan and South Korea benefit from favourable macroeconomic conditions and ageing populations.
