Global healthcare private equity deal value hits $115bn in 2024, second-highest on record

Global healthcare private equity reached an estimated $115bn in 2024, marking the second-highest annual deal value on record, driven by a rise in large-scale transactions.

The year saw five deals exceeding $5bn, up from two in 2023 and one in 2022. North America led the market, accounting for 65% of global deal value, followed by Europe at 22% and Asia-Pacific at 12%.

Deal volumes remained consistent with historical trends, as increased activity in North America and Europe offset a 49% drop in Asia-Pacific deal volumes since 2023.

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In Europe, deal volumes surpassed their 2021 peak, driven by a focus on smaller transactions in the first half of 2024. Specifically, biopharma and medtech emerged as key sectors, offering firms opportunities to scale assets efficiently across the region.

Moreover, healthcare IT deal activity rebounded in 2024, driven by multiple factors. On the one hand, providers, under financial strain and adapting to evolving reimbursement models, are investing in core systems to enhance efficiency, attracting private equity interest in workflow improvement solutions.

On the other hand, payers are focusing on advanced analytics to improve payment integrity. Similarly, biopharma companies are upgrading clinical trial IT infrastructure to streamline drug development amid tighter funding and increasing regulatory pressures.

Source: PR Newswire

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