Private Equity Firms Sustain Strong Acquisition Activity as IPO Market Stalls

Despite continued market turbulence and a weak IPO environment, private equity (PE) firms remain active buyers of private, venture-backed companies, offering an alternative exit path for startups. Over the past five years, PE firms have spent more than $56 billion on such acquisitions, though the actual total is likely much higher due to many deals lacking disclosed prices. In 2025 alone, 22 acquisitions have already been announced, including major deals like Clearlake Capital’s $5.3 billion purchase of ModMed and Bain Capital’s $2.6 billion deal for HealthEdge—both mature health software companies with strong revenue and established operations.

These acquisitions tend to involve later-stage companies with proven business models, making them attractive to PE firms.

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