In an article for Middle Market Growth, Bass, Berry & Sims attorneys Angela Humphreys, Ryan Thomas, Delaney Durst and Ben Kelly examined some of the sub-sectors within the healthcare industry that are proving popular among private equity investors for 2025. In the article, the authors outline the following sectors with expected higher deal volume for the rest of the year:
- Infusion Services: The authors point to several reasons for the popularity in the infusion services space in 2025, such as the fragmented market, lighter regulation and elevated valuation, adding “PE interest is driven primarily by the increasing specialized IV-based drug products and treatment programs.”
- Healthcare Technology: According to the attorneys, “This still fragmented sector presents opportunities for PE firms to consolidate to create value through economies of scale. PE firms are increasingly investing in assets that improve operational efficiencies for providers, such as technology that optimizes revenue cycle management (RCM), software that enhances workforce management and AI automation technology.”
- Home-Based Care: This sector is another top area for PE deal activity, due to “its ability to reduce costs and the bipartisan support during the 2024 presidential campaign.”
- PPMs: The authors note there “is still appetite for expanding existing specialty verticals, particularly in fragmented specialties and where there are unique assets,” however, they also caution that “investors should continue to monitor recent regulatory trends targeting PE investment in the PPM space and may consider deploying capital sooner rather than later with additional new legislation looming.” For a comprehensive overview of these state laws, visit the firm’s interactive map that examines the requirements by state.
The full article, “Trends Shaping Private Equity Investment in Healthcare: Deal Outlook for the Remainder of 2025,” was published May 12 by Middle Market Growth and is available online.