Thoughts on YTD M&A Trends
Overall, 2025 has been underwhelming. Reuters recently noted that in the first two months of 2025, deal volume was the weakest since the financial crisis—with only about 1,603 deals completed and total deal value falling by roughly 29% year over year to approximately $248.78 billion.
As shown by a simple unprompted google search...we can see the issue. The heightened economic uncertainties around Trump's policies. I think it's easy to understand the direct impact tariffs will have on businesses, but it feels like there's a renewed worry about the ultimate impact of these changes to the health of the consumer.
It's not all doom a gloom. Sectors like the U.S. power industry, driven in part by the surge in demand for AI-powered data centers, had a major transaction with Constellation Energy’s $16.4 billion acquisition of Calpine
At VastoFi, we're helping sponsors navigate the uncertainty so that when an opportunity they like comes up, they're able to move quickly and execute at the best terms. I'd note that while closed platform acquisitions have lagged, we continue to see lots of activity with our sponsor clients bidding on deals.
Ivan Levingston Oliver Barnes Joshua Franklin Financial Times
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