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By: International law firm Dechert LLP
While the 2024 election cycle may introduce temporary uncertainty, the convergence of positive economic trends such as waning inflation, anticipated additional interest rate cuts, and cautious optimism for a soft landing suggests robust M&A activity into 2025. Additionally, private equity and private credit firms have significant funds ready to invest, and a backlog of PE portfolio company exits is expected to boost the market going into 2025.
Curious about how a Trump or Harris administration could impact the private equity (PE) and private credit sectors? To a large degree, the extent to which either a Trump or Harris administration will be able to enact their plans will also be dependent on the outcome of the congressional elections, but read on to discover the potential changes and their implications based upon what the candidates have said.
Changes implemented by a new Trump administration could foster more robust M&A activity in industries such as energy (oil and gas) and U.S.-based manufacturing. A generally positive inclination toward cryptocurrency and crypto services could also give a boost to activity in the fintech and financial services sectors. Conversely, "green" industries such as renewables and electric vehicles are likely to receive less government support and incentives, which may dampen related investment and M&A activity in those sectors. Larger technology deals are likely to continue to rec...................... To view our full article Click here
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