Private Markets

The private equity landscape is undergoing significant changes, and macroeconomic factors such as inflation, interest rates, and trade policies are influencing dealmaking in 2025. Uncertainty in these areas is contributing to a slower pace of M&A activity compared to previous years. With inflation and interest rate decisions still fluctuating, CFOs would benefit from keeping an eye on these factors, as they are likely to influence both financing costs and available investment opportunities...

HMRC, the UK tax authority, has reversed a controversial tax crackdown on private equity firms, avoiding a potential tax burden of hundreds of millions of pounds in retrospective liabilities. This shift follows intense lobbying from the private equity sector, which opposed changes to the tax treatment of limited liability partnerships (LLPs) introduced in 2023. The issue centered on HMRC’s reinterpretation of LLP tax rules, particularly “condition C"...

Private equity is regaining momentum after a period of uncertainty, reshaping investment strategies for CFOs. Dealmaking has rebounded, exit activity has increased, and a more favorable financing environment has driven higher valuations. For CFOs, this means reassessing liquidity planning, capital structure, and long-term investment allocations...

After three years of slow M&A activity, 2025 signals a market rebound as interest rates ease and regulatory challenges soften. Companies now see M&A and divestitures as essential tools to navigate shifting profit pools, tech disruption, and post-globalization strategies. Demand for deals remains high, driven by the need to balance growth and risk amid supply chain disruptions and geopolitical tensions...

In 2025, global M&A professionals are optimistic about the year ahead, with 87% of survey respondents from SS&C Intralinks and Reuters Events anticipating increased deal and financing activity. This is a significant shift from the previous year when only half of respondents felt similarly. With optimism rising across regions, particularly in North America and Asia-Pacific, CFOs are likely to see more opportunities in large-scale deals...

The private equity market saw a shift in deal-making in 2024, with buyers securing favorable terms and pricing despite lower deal volume compared to the 2021 boom. The median price-to-earnings (P/E) multiple for global PE buyouts dropped to 11.1x, the lowest level since 2016. This decrease highlights a growing trend where PE firms are focusing on larger buyouts at more attractive valuations, allowing them to target higher-value assets...

Private equity firms are increasingly capitalizing on corporate carve-outs to generate value, especially as interest rates remain high. These transactions, where non-core assets are divested, provide PE buyers with the flexibility to design a business that meets the needs of specific sub-sectors and customers. However, despite the growth potential, carve-outs are not without challenges, particularly in execution and operational integration...

Goldman Sachs is expanding its focus in the private credit and equity markets through the establishment of the Capital Solutions Group. This new initiative combines the firm's financing, origination, structuring, and risk management functions into one cohesive unit, allowing it to meet the rising demand for private credit and alternative assets...

Private equity firms are planning a strong return to the IPO market, driven by buoyant U.S. stock markets and favorable economic conditions. This shift comes after a three-year hiatus caused by rising interest rates, which dampened investor appetite for new listings. With rates expected to decrease further in 2025, banks and analysts are predicting a flurry of IPOs, particularly from larger, profitable companies that are more attractive to investors...

Following its third consecutive interest rate cut since September, the Federal Reserve has reduced the main interest rate by a quarter percentage point, signaling a potential slowdown in further monetary policy changes. While this policy shift creates a mixed outlook for dealmakers, it also offers greater market predictability, according to analysts...