Global M&A volume rebounded to $4.5 trillion in 2025, a 38% year-over-year increase, driven by a doubling of mega-deals (>$10B) as companies pursued 'focused scale'.
Artificial Intelligence has become an omnipresent force, with 90% of organizations reporting regular use and significant budget allocation, fueling high valuations and strategic minority investments.
Private equity is in a 'capital cycling' phase, with a large backlog of assets driving growth in sponsor-backed IPOs, the secondary market (up 60% YoY), and the use of continuation vehicles.
The outlook for 2026 is bullish, with predictions of a 25% increase in global IPO issuance and robust debt markets capable of supporting LBOs up to $25 billion and corporate acquisitions over $40 billion.
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Concerns Raised
Failure of AI to deliver expected efficiency and growth benefits as quickly as anticipated
Persistent inflation that negatively impacts central bank policy
Ongoing geopolitical concerns and unforeseen 'known unknowns'
Opportunities Identified
Executing large-scale M&A and LBOs due to deep and supportive debt markets
Capitalizing on the strong 2026 IPO market, particularly for sponsor-backed assets
Investing across the AI ecosystem, from infrastructure to application layers
Utilizing the booming secondary market and continuation vehicles for PE portfolio liquidity