After a subdued start to the year, PE healthcare services investing in Q3 2024 showed early signs of a rebound. Despite a modest dip in deal volume from Q2, with 148 deals announced or closed, investor confidence is slowly returning. Much of the activity focused on healthcare IT and pharma services, reflecting an optimistic outlook for these segments even as care delivery transactions gradually pick up.
Within healthcare services, medspa and outpatient mental health have emerged as promising areas, with rising sponsor demand. Although platform-scale assets remain scarce, the strong interest here points to growing potential. Meanwhile, physician practice management (PPM) is re-emerging as a “contrarian play,” with signs of easing regulatory hurdles paving the way for strategic exits and new investment theses into 2025.
Notably, Q3 saw bright spots in oncology and infusion services, which continue to drive deal activity. The infusion category, in particular, has been a standout performer throughout 2024, with substantial capital flowing into growth-oriented providers. The quarter also marked a rare occurrence of two PE-backed IPOs in healthcare—Guardian Pharmacy Services and Ardent Health—illustrating a renewed openness to public markets for healthcare exits.
While Q3 2024 may have been restrained, early signs of a shift are evident as PE sponsors adapt and reposition for growth in 2025. Sectors like healthcare IT, oncology, and infusion services are paving the way for renewed activity, suggesting a cautiously optimistic outlook as healthcare services adapt to evolving market conditions.
This recap is based on the PitchBook Q3 2024 Healthcare Services PE Update.
Garrett Lipus
Partner, Executive Search
glipus@mbexec.com
Garrett Lipus is a Partner of McDermott + Bull and a member of the firm’s Healthcare and Life Sciences Practice. His national practice focuses on serving clients in healthcare services, medical devices, and healthcare technology and his clients range from privately held organizations to public companies and private equity firms that have an investment focus in healthcare or life sciences. Garrett received his BA in business administration from the University of San Diego and was a member of the school’s Division I Golf team.