Tom Miles on Global Dealmaking, Private Equity, and US Investment Trends

Private Equity Deployment and Dry Powder

• 💰 Private equity firms are actively deploying capital, with approximately $4 trillion of dry powder available, though fundraising has become tougher.
• 🎯 They are actively pursuing corporate carveouts and seeking out valuation disconnects in smaller public companies.
• 🤝 The market for one sponsor buying a portfolio company from another sponsor is showing signs of resurgence.

Cross-Border Dealmaking in a Geopolitical Climate

• 🌍 Despite a tense geopolitical environment, cross-border dealmaking saw a significant increase, rising 40% last year.
• 🇺🇸 The United States was the primary target nation for investment, attracting roughly three times the investment of the next country.
• 📈 Tariffs and the desire to have assets within the US have increased urgency for investing in American companies, making deals possible even with geopolitical tensions.

Corporate Strategies and Government Influence

• 🗺️ Companies are driven by their defined strategies for global footprint expansion, which have historically taken precedence over government intervention.
• 📊 While government involvement is possible, the primary driver for deal activity remains the execution of established corporate strategies.