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Provident Healthcare Partners Provident Healthcare Partners

Q3 2025 Market Update

Provident Healthcare Partners
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Q3 2025 Market Update

The third quarter saw a meaningful uptick in M&A activity across the healthcare services spectrum, with notable increases in both new private equity investments and sponsor exit activity.

Total deal volume rose 12% from the prior quarter, with financial sponsor-backed transactions climbing 72% quarter-over-quarter (and 32% year-over-year). Exits of sponsor-backed businesses also increased after a slow Q2-2025. These trends have been supported by an improving lending environment, a stabilizing macroeconomic landscape, and increased
pressure from LPs to realize returns on invested capital.

While most sectors across the healthcare continuum participated in the trend of increased sponsor activity, new platform activity was particularly prominent within post-acute care, pharma services, and multi-site provider services—all of which saw multiple new platform formations.

This trend signals strong momentum for near- and mid-term M&A activity, as many of these newly recapitalized platforms plan to pursue aggressive inorganic growth strategies to meet their return targets.

To print and download the full Q3 2025 Market Update report, please click below…

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