Sponsor-backed companies are expected to account for approximately 20% of all U.S. IPOs in 2025.

Refinancing deals accounted for 75% of all leveraged finance activity in 2025.

A potential risk to the 2026 market outlook is the failure of AI to deliver expected efficiency and growth benefits as quickly as anticipated by investors.

Major take-private transactions in 2025 included 3G Capital's acquisition of Skechers, Sycamore Partners' purchase of Walgreens Boots Alliance, and the acquisition of Electronic Arts by Silver Lake an...

Sponsor-backed IPOs in 2025 outperformed the broader IPO market, delivering an average return of nearly 20% compared to 15% for all IPOs.

The current debt markets can support a corporate acquisition of a double-B rated company with a debt package exceeding $40 billion.

JP Morgan's direct lending initiative provided nearly $10 billion in capital to private equity sponsors in 2025.

Persistent inflation that negatively impacts central bank policy and ongoing geopolitical concerns are key risks to the market outlook for 2026.

The TMT and healthcare sectors are expected to continue driving the IPO market in 2026, accounting for approximately 60% of activity.

JP Morgan predicts global IPO issuance could increase by 25% in 2026, returning to pre-COVID average levels.

JP Morgan predicts that sponsor-backed companies could account for 30% to 35% of all IPO activity in 2026.

The current debt markets can support a leveraged buyout (LBO) of a single-B rated company with a debt package of up to $25 billion or more.

Positive sentiment in the equity and debt markets in 2025 was driven by secular tailwinds from AI investments, anticipation of supportive Federal Reserve policy, and pro-business fiscal policy.