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Laxman Pai, Opalesque Asia:

Private equity megadeals are set to reach a record amount in 2025, said a study.

S&P Global Market Intelligence forecasts that the total value of deals over $5 billion will surpass the $230.29 billion recorded back in 2021.

The trend is driven by managers looking to acquire high-quality, high-value companies that are expected to weather the storms of tariff uncertainty and economic confusion, according to a new report from S&P

"Near-record levels of dry powder and premium valuations for prime assets have put private equity-backed megadeals on course for an all-time high in 2025," the report said.

A total of US$145.33 billion was invested across a dozen private equity-backed megadeals between Jan. 1 and Aug. 18, according to S&P Global Market Intelligence data.

With more than four months of dealmaking left on the calendar, the value of private equity-backed megadeals is nearing the record total of US$230.29 billion set in 2021.

According to the report, one factor contributing to the surge is the high valuation multiples assigned to some of the largest buyout targets. Fund managers are demonstrating a willingness to pay up for large, stable companies with cash flows that can withstand tariffs and macroeconomic turbulence.

And they have the cash to do it. While global private equity dry powder has declined from its 2023 peak, uncommitted capital remained at a substantial US$2.5 trillion as of June 30. The top 25 firms contro......................

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