Bain Healthcare PE Report 2025 | Deals Surge to $115B in 2024, Second-Highest on Record
- Editor
- Jan 10
- 2 min read
What's New Global healthcare private equity deal value reached $115 billion in 2024, marking the second-highest total ever recorded, driven by five mega-deals exceeding $5 billion each. North America dominated with 65% of global deal value.
Why It Matters The robust dealmaking, despite high borrowing costs and extended hold periods, signals strong investor confidence in healthcare assets and highlights the sector's resilience amid economic headwinds.
Big Picture Drivers
Biopharma dominance: The sector led all healthcare segments in deal value, with major investments in clinical trial IT infrastructure and manufacturing capacity, exemplified by Novo Holdings' $16.5B Catalent acquisition.
Healthcare IT acceleration: Healthcare providers are making substantial investments in core systems to boost operational efficiency, while payers are increasingly focusing on advanced analytics capabilities.
Geographic realignment: Deal activity is shifting away from China toward other Asian markets, with India, Japan, and South Korea emerging as attractive alternative investment destinations.
Mid-market outperformance: Smaller funds are delivering superior returns through specialized expertise and innovative investment approaches, particularly in healthcare IT and provider services.
By The Numbers
Deal value: $115B in 2024 vs. $61B in 2023
Regional split: North America (65%), Europe (22%), Asia-Pacific (12%)
Mega-deals: Five transactions exceeded $5B (vs. two in 2023)
Exit slowdown: Deal volume down 41% from 2021 peak
Key Trends to Watch
Strategic carve-outs: Healthcare companies are increasingly spinning off non-core assets, providing PE firms with attractive opportunities to acquire and revitalize underperforming businesses.
Value creation imperative: With multiple expansion becoming harder to achieve, firms are focusing more on operational improvements and strategic growth initiatives to generate returns.
Asia-Pacific transformation: India has emerged as the region's largest market by deal volume, while Japan and South Korea are seeing accelerated activity driven by favorable demographics.
Mid-market evolution: Smaller PE firms are successfully expanding beyond traditional provider assets into healthcare IT and services, while maintaining strong positions in biopharma and medtech.
The Bottom Line for Investors While dealmaking remains robust, success increasingly depends on operational improvements rather than financial engineering. Winners will focus on value creation strategies and regional diversification, particularly in fast-growing Asian markets.
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