McGuireWoods held its 21st Annual Healthcare Private Equity and Finance Conference in Chicago, May 13-15, 2025. This premier conference brought together leading healthcare investors, lenders, executives, consultants and advisors from across the U.S. and beyond to share insights, identify trends and explore the ever-evolving landscape of healthcare private equity transactions. As the industry continues to navigate shifting regulatory priorities and rapid technological advancement, the conference served as a critical forum for shaping the future of healthcare private equity and finance investment.
The conference kicked off on May 13 with an in-depth operating company bootcamp focusing on a wide array of topics applicable to operators, such as structural decisions, provider alignment, growth through ancillaries and preparing for a successful sale. Bootcamp attendees shared the belief that now, more than ever, a continued emphasis on compliance in connection with scaling, alignment and expansion remains imperative for success.
This year’s keynote speakers, Lance Armstrong, world-renowned athlete and general partner of Next Ventures, and Anousheh Ansari, astronaut, high-tech serial entrepreneur and global leader, reflected on their respective careers in and out of the investment space. In addition to the keynotes, panels of top lenders, fund leaders, healthcare executives, investment bankers and industry leaders gave deep insights into the overall state of the regulatory, lending, operational and investment environments, with many discussions sharing a key theme of “betting on people.” These engaging conversations, discussions and opportunities to connect continued for all attendees at the Black Professionals in Private Equity and Finance and Women in Private Equity and Finance breakfasts, which focused on the importance of connection, community and fostering the next generation of leaders. In an increasingly complex environment, these moments of connection and reflection remain vital to ensuring that all professionals can lead, grow and thrive.
This article is the first of a multi-part series highlighting the thought-provoking discussions and takeaways from the conference. This piece provides an overview of the key themes to be explored in this series.
- State of the Market and Healthcare Private Equity. Kicking off the main sessions of the conference, healthcare leaders shared their perspectives on the general state of the market and healthcare investing. A tone of measured optimism prevailed across numerous subsectors despite panelists acknowledging economic and regulatory headwinds. A clear theme was the continued broadening of investment focus beyond traditional provider service companies to include areas such as healthtech, IT infrastructure, pharma services and adjacent healthcare verticals. There was a welcomed, and somewhat unexpected, sense of optimism around Medicaid-heavy sectors. Investors noted that despite looming reimbursement pressures, many see real opportunities to scale, enhance efficiency and expand access to underserved populations while still meeting investment goals. Across panels, speakers reinforced the importance of keeping the patient at the center of operational and investment strategies, with a shared commitment to improving outcomes and ensuring access to care, regardless of market uncertainty. Experts agreed that in five years, consumer empowerment, streamlined care, and integrated technologies to enhance the lives of patients and providers will be key for success.
- Key Trends in the Lending Market for Healthcare Private Equity Transactions. Closely tied to market dynamics is the interplay between equity and debt, another key theme that was explored across the conference’s sessions and panels. Many lenders in attendance echoed a slower start to 2025 than they originally anticipated, citing macro-economic and political factors. Notwithstanding, commentators also noted seeing continued refinance, add-on and similar opportunities remaining active, with most anticipating a more active second half of the year. Pricing continues to be competitive and of strong interest to private equity sponsors, along with a continuing trend of more aggressive terms creeping down market. Most agreed that there is plenty of capital available and ready to use, which is further driving increased competition for deals.
- Strategic Growth and Investment: Eyes on Life Sciences and Pharma Services. While traditional private placement memorandum investments remain active, this year’s conference made clear the life sciences industry (including the pharma services subsector) continues to draw heightened investor interest as innovators strive to make Americans healthier. Recent interest and opportunity stems, at least in part, from changes driven by the Trump administration’s policies, including proposed cuts and interference with federal science budgets, which is compelling some universities and startups to seek private capital to focus innovation on commercially viable projects that align with return-driven investment priorities. Other key Trump administration policies of interest relate to tariffs and incentives for U.S.-based production of life science products. Investors and industry leaders also expressed excitement about the potential impact of AI in the pharma services and pharma-adjacent sectors, from clinical trial design to drug discovery and decentralized trial management. Further, investors’ theses focused on aging populations while avoiding direct reimbursement pressures. What has not changed is the regulatory complexity and longer market timelines for life sciences investments, many of which require not only a comprehensive understanding of state and federal regulatory standards (e.g., FDA, DEA, CMS, NIH), but an appreciation for evolving risk-based approaches taken by regulatory agencies in relation to general oversight, product development, market pathways, supply chain operations and enforcement. Investors with the patience and deep subsection expertise can capitalize on these shifts by targeting segments that align with policy-driven market dynamics.
- High-Growth Sectors and Emerging Hotspots. In addition to healthtech, pharma services and healthcare-adjacent businesses, discussions around high-growth areas in the provider services sector highlighted subsectors attracting investor interest and innovation. Post-acute care (especially skilled nursing facilities and hospice), behavioral health, consumer-driven healthcare models and infusion services were repeatedly cited as areas with strong, long-term fundamentals. A notable takeaway was the continued enthusiasm around dental support organizations and the dental industry viewed through a strategic lens as platforms with growth and exit potential. There was also discussion about exploring adjacent sectors or expanded service lines, such as wellness and longevity, which are increasingly becoming integrated into aesthetic platforms, providing a more well-rounded investment. Across these high-growth sectors, investors and operators have their eyes on AI and are considering how technology can play a larger role to drive efficiency, reduce administrative burdens and prepare platforms for institutional investment or sale. Many speakers emphasized that “with great volatility comes great opportunity,” especially for those willing to embrace complexity, regulatory change and evolving state transaction notice regimes.
- Healthtech and Artificial Intelligence in Healthcare: The New Frontier in Healthcare Investment. Technology’s overall impact in the pharma services space remains a core focus for investors. Digital health and AI in healthcare are rapidly evolving, driven by post-COVID momentum, labor shortages and increasing consumer demand for personalized, efficient care. Providers see major gains in automating administrative burdens, enhancing clinical workflows and improving patient outcomes as well as employee experiences. Panelists explored how AI is increasingly acting as a co-pilot, particularly in documentation, diagnostics and patient engagement. At the same time, data integration, data accuracy and scalability remain persistent challenges. Across sectors, panelists discussed the key factors in deciding whether to build or buy technology solutions and emphasized the value in leveraging data. Panelists noted a growing shift from human-driven systems to data-driven systems and expressed that systems that integrate native data may outperform systems that have to ingest third-party data in the future. Furthermore, investors cited interest in payor service platforms, which often bring healthtech and AI solutions to the vast data held by insurance payors. Investment opportunities lie in solutions that demonstrate clear ROI through operational efficiency, talent enablement and patient-centered outcomes.
- Leveraging Third-Party Alignment Strategies. A nuanced but increasingly important strategy discussed throughout the conference involves alignment with third parties, such as health systems, providers, payors and vendors, to drive value and manage risk. Across panels, speakers emphasized that successful alignment hinges on shared strategic goals, cultural fit and operational transparency. In addition, alignment strategies across various care settings (e.g., hospitals, ambulatory surgery centers and office-based services) have become strategically important, particularly as value-based care initiatives increase. Deal success often depends on aligning clinical incentives and maintaining strong physician engagement. Investors in consulting and services platforms likewise underscored the need to retain and empower key personnel, ensure succession planning and build integration models that preserve firm culture. As healthcare becomes more complex and interconnected, sector specialization and value-driven partnerships become central to sustainable growth.
This year’s conference underscored the continued complexity of the healthcare investment landscape with a refreshed vigor for pioneering the next wave of transactions. Whether navigating capital constraints, pursuing emerging technologies, or aligning with clinical partners, stakeholders, operators and investors across the board are recalibrating strategies to succeed in a more cautious, yet opportunity-rich, environment.
The next installment of this series will take a deeper dive into current market conditions and what they signal for the near-term future of healthcare private equity investment.
Thank you to everyone who attended, shared insights and participated in this year’s HCPE Conference.
