Private equity activity has slowed in the past 12 months, according to our recently published Healthcare M&A Quarterly Report. Headwinds and uncertainty in the market have finally caught up to private equity firms and their sponsored companies, resulting in a 17% slowdown in activity in Q2:25 compared to the first quarter. Year-over-year differences were even more pronounced, sliding by 24% in Q2:25 compared with the second quarter of 2024. Announced spending declined as well, reaching only $2.89 billion in Q2:24, far less than the $21.9 billion announced in the first quarter of 2025.
Despite these slowdowns, private equity activity remained a driving force in the market, accounting for approximately 30% of all activity in the second quarter, particularly in sectors such as Physician Medical Groups (56 deals), eHealth (23 deals), and Home Health & Hospice (9 deals), as seen in our LevinPro HC database.
Here are the most notable deals and trends of Q2:25 from private equity investors:
- Investindustrial, a London-based private equity firm, acquired DCC Healthcare for $1.41 billion, the healthcare unit of DCC plc, focused on providing devices used in minimally invasive surgeries. The deal was completed on a cash-free and debt-free basis, and is expected to be finalized in the third quarter. This was the largest deal based on disclosed purchase price.
- In April, NMS Capital sold U.S. Urology Partners to General Atlantic for an undisclosed sum. U.S. Urology Partners is an emerging management services organization in the physician space, founded in 2018 by NMS. According to the LevinPro HC database, it is affiliated with four different physician organizations across four different states, including
Urology of Indiana (40 physicians) and Greater Boston Urology (22 physicians). U.S. Urology Partners and General Atlantic plan to accelerate the platform’s expansion. - OneOncology, Inc., backed by both PG Capital and Cencora, announced four acquisitions in the second quarter, the most for a private equity-sponsored platform. It struck a major deal in New York, acquiring New York Oncology Hematology, an oncology practice with eight upstate locations and over 30 physicians.
- With upcoming Medicaid cuts, the healthcare services sector is facing some tough headwinds, and a few firms have decided that real estate is a safer bet. In partnership with Elliott Bay Capital Trust, private equity firm Pantheon Ventures announced six deals in the second quarter, acquiring medical outpatient buildings all along the East Coast. The largest property, located in Richmond, Virginia, is a 54,379-square-foot outpatient medical facility that was recently converted from office use and fully renovated in 2023 with high-end, medical-grade finishes. The two companies also acquired properties in Georgia and Ohio.
- Private equity firms have also turned their attention to digital health companies, particularly seeking to capitalize on the growing demand for AI services in healthcare. New Mountain Capital purchased Thoughtful AI, an AI-powered revenue cycle automation company based in Austin, Texas, and SmarterDx, a clinical AI company that develops automated pre-bill review tech to help hospitals maintain revenue integrity.
