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Alternative Market Briefing

M&A rises despite headwinds

Wednesday, October 29, 2025

Bailey McCann, Opalesque New York:

Global M&A activity climbed 10% to $1.9 trillion through Q3, led by a resurgence in North American dealmaking, according to a new report from Boston Consulting Group.

BCG's industry sentiment indicator suggests that dealmakers across all sectors are feeling a renewed sense of optimism toward the M&A environment. Sentiment is particularly positive around technology and energy companies.

According to the report, during the first nine months of this year, the number of megadeals-those valued at $10 billion or more-reached 27, up from 21 over the first nine months of 2024. That's still lower than the recent peak achieved in 2021, but is higher than last year and does indicate some improvement in the broader M&A market.Global PE deal value rose 38% year-to-date through the first three quarters of 2025 compared with the same period last year.

PE firms continue to sit on substantial dry powder-approximately $2 trillion in undeployed capital as of early October 2025. Global fundraising has started to slow, which likely means more of that $2 trillion will be put to work over the near term. Institutional investors report ongoing denominator issues in their private equity portfolios due to a lack of distributions. Fundraising will likely remain lower as long as those issues persist.

BCG analysts say they see evidence of pent up supply and demand dynamics in the market. "On the sell side, divestiture activity has been m......................

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