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| (Mara Potter/PitchBook News ) |
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Private capital executives and dealmakers say M&A is on hold due to shifting tariff policies and other market uncertainties, which are hobbling their ability to value and fund deals.
Yet, in the past few weeks, I have seen no shortage of outsized transactions commanding attention.
I'm Madeline Shi, and this is The Weekend Pitch. You can reach me at madeline.shi@pitchbook.com or on X @Madelin94615831.
Global Payments, for instance, announced a $24.25 billion acquisition of Worldpay, where GTCR holds a majority stake. In another high-profile example, Thoma Bravo unveiled its $10.55 billion deal to acquire Boeing's Digital Aviation Solutions business. And Intel sold 51% of its non-core Altera business to Silver Lake in a deal that values the semiconductor player at $8.75 billion, around half of what Intel paid for the unit in 2015.
This divergence between expectations and reality piqued my interest: Why is the market defying predictions? And what kinds of deals are still closing despite the market uncertainty? |
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PE deal value grew 20% year-on-year in Q1 for Europe's financial services sector, according to PitchBook data. During Q1, how much was invested in the vertical?
A) €11.2 billion
B) €4.6 billion
C) €7.8 billion
D) €2.4 billion
Find your answer at the bottom of The Weekend Pitch! |
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4 dealmaking insights
amid market volatility
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| (Jenna O'Malley/PitchBook News) |
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Major stock indexes struggled again last week in reaction to the president's proposed tariffs and criticism of the Federal Reserve.
PitchBook analysts have been studying the fallout from tariffs and the economic uncertainty. Here are some takeaways:
Our fund performance barometers signal negative expected returns across four of the five core strategies we have modeled. Recent market volatility is unlikely to show up in reported private fund NAVs for several months, so these barometers provide a more real-time view into what's happening under the hood. Full report
LPs are likely to reduce PE allocations due to the denominator effect arising from a fall in public markets. As more GPs and LPs are forced to sell assets and portfolios, secondaries PE deal activity stands to accelerate from already record levels. Full report
Venture debt could help IPO hopefuls buy time, as it did during the COVID-19 market crash. Companies considering imminent listings would be likely candidates to take on loans to bridge the gap until their IPO. Full report
Companies should be on the lookout for "vents" in the IPO window—short periods of favorable conditions—that are likely to appear in 2025, even though most listing activity will be pushed out to 2026. Full report |
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Long lull for healthcare services
despite big Walgreens win
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| (Getty Images) |
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PE dealmaking in healthcare services slumped in Q1, with estimated deal volume hitting its lowest point since the 2020 pandemic crash.
Still, major developments—like Sycamore Partners' $10 billion take-private of Walgreens and a spate of PE exits—signal shifting strategies amid economic headwinds and market volatility.
Read our latest analyst note for a closer look at sector performance, standout deals and how changing market conditions are reshaping PE dealmaking in healthcare. |
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