Private Equity 2025: The technology and health sectors in full revolution

The technological revolution and AI: an unprecedented investment driver

Artificial intelligence is now the main catalyst for growth in the tech ecosystem. Investing in AI-based solutions is a dominant trend, transforming not only the targeted businesses but also the investment methodologies of the funds themselves. This technological revolution is changing the traditional processes of valuation and value creation.

A particularly remarkable development concerns data processing. Until recently, manipulating data required tedious cleaning and organization, making projects costly in terms of time and resources. Now, new AI techniques make it possible to overcome these constraints, revolutionizing the profitability of data-driven projects.

The tech sectors favored by investors include specialized software with high technical added value, cybersecurity (especially anti-intrusion solutions), compliance technologies that meet growing regulatory obligations, and space tech using satellite data for terrestrial applications. This sectoral specialization allows funds to acquire in-depth expertise and to maximize their strategic support.

The health sector: resilience and innovation at the service of performance

The health sector has shown remarkable resilience with a growth of 17.7% in deal value in 2024. This performance is explained by several structural trends: demographic aging, the rise of digital health, and the optimization of care pathways.

Private Equity activity in healthcare reached 115 billion dollars in investments in 2024, with a European record of 136 transactions. This dynamic reflects the attractiveness of a sector that is both defensive and innovative. Specialized funds identify strong potential among French companies in the sector, capable of becoming national leaders before internationalizing.

The most attractive segments include medical devices, Home Support Services (MAD) and Home Hospitalization (HAD) services, digital health, and biotechnologies. The consolidation of the medical device sector, which has been historically fragmented, allows hospitals to access better quality products at lower costs.

The impact of ESG criteria: a sustainable transformation

Environmental, Social and Governance (ESG) criteria are emerging as a determining factor in investment strategies in 2025. More than 50% of infrastructure transactions now involve renewable energies and energy storage. This energy transition represents a major driver of attractiveness, with record investments of 2 trillion dollars in clean energy in 2024.

The health sector is a perfect example of this convergence between financial performance and societal impact. Investments in health make it possible to improve access to care while generating attractive returns. This alignment of interests constitutes a sustainable competitive advantage for specialized funds.

Specialization: the key to success in a sophisticated market

The increasing sophistication of the market requires increased specialization on the part of investors. This evolution has several advantages: development of a targeted network, time savings in the analysis of cases, facilitated identification of strategic and resilient sectors, and strengthened legitimacy among management teams.

This specialization is particularly relevant in health, where understanding specific economic models and national regulatory constraints is a decisive advantage. The performances demonstrate this added value: between 2010 and 2021, the median IRR of deals in health care exceeded that of other industries by six points.

Perspectives and opportunities for 2025

The 2025 environment offers favorable conditions for Private Equity despite geopolitical uncertainties. The gradual fall in interest rates makes it easier to finance unlisted companies, while the historical decorrelation of Private Equity with listed markets offers valuable diversification.

Current valuations, which are generally attractive after three years of downturn, create attractive investment opportunities. The funds are now focusing on a strategy that focuses on transformative growth, local champions, and international innovation.

Conclusion: a changing ecosystem

The year 2025 marks a turning point for Private Equity, characterized by the emergence of new technological and health paradigms. The convergence between sectoral expertise, technological innovation and ESG criteria is redefining the standards of value creation. Investors who can adapt to this new situation will benefit from the best growth opportunities in a constantly changing environment.

‍