\n![\"1681458d.jpg\"\/](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2025\/09\/1681458d.jpg\")
<\/a><\/p>\nQ2 Earnings Recap<\/p>\n
\nSentiment: While acknowledging recent market
\nheadwinds and volatility, public PE executives expressed confidence
\non Q2 earnings calls, pointing to various megatrends expected to
\ndrive growth and forecasting a pickup in transaction activity.
<\/p>\n
Growth Drivers<\/p>\n
Brookfield<\/p>\n
“This opportunity set is large and compelling and
\nis driven by three powerful themes, which we have
\ndiscussed for years with you: digitalization,
\ndecarbonization, and deglobalization. These three Ds are
\nmore relevant today than ever before. They have
\nexpanded and are converging in ways that are accelerating
\ndemand for capital at a global scale.”<\/p>\n
\u2013 James Flatt, CEO<\/p>\n
Blackstone<\/p>\n
“Our deployment has emphasized areas benefiting
\nfrom long-term secular megatrends, such as digital and energy
\ninfrastructure, digital commerce, private credit, life sciences,
\nand India. These areas have also been among the largest
\ndrivers of appreciation in our funds. In particular, the
\nenormous need for debt and equity capital to build the
\ninfrastructure powering the artificial intelligence revolution has
\ncreated extremely positive dynamics for our
\nbusiness.”<\/p>\n
\u2013 Stephen Schwarzman, Chairman, CEO and Co-Founder<\/p>\n
EQT<\/p>\n
“Mid to long-term, though, the secular growth
\ntrajectory remains very much intact…The largest
\nshare of the expected growth in absolute terms will continue to
\ncome from institutional investors. But the most rapid relative
\ngrowth will come from the Private Wealth
\nsegment.”<\/p>\n
\u2013 Per Franz\u00e9n, CEO and Managing Partner<\/p>\n
Outlook<\/p>\n
Blackstone<\/p>\n
“Looking forward, importantly, we believe the
\ndealmaking pause is behind us…The environment we see
\nemerging of lower short-term interest rates, less uncertainty, and
\ncontinued economic growth, combined with a pent-up desire to
\ntransact, is the right recipe to reignite M&A and IPO
\nactivity. For Blackstone, we have the largest
\nforward IPO pipeline since 2021. These trends should be
\nvery favorable for dispositions exiting this year and into
\nnext year.”<\/p>\n
\u2013 Jon Gray, President and COO<\/p>\n
Ares<\/p>\n
“With the potential for lower short-term rates in the US
\nand lower rates already reflected in Europe, coupled with record
\namounts of private equity dry powder, we’re optimistic
\nthat transaction activity could accelerate further in the
\nsecond half of the year. For example, our global pipeline
\nof investment opportunities across all of our investment groups and
\nstrategies is at the highest level in over a
\nyear.”<\/p>\n
\u2013 Michael Arougheti, Co-Founder, CEO, and Director<\/p>\n
A Look Ahead<\/p>\n
\nFall IPO window: Several high-profile IPOs are
\nin the pipeline heading into the post-Labor Day fall listing
\nwindow, including PE-backed companies. Strong sentiment toward the
\nUS IPO market is expected to continue through the remainder of 2025
\nand into 2026.
\n
\nOngoing liquidity crunch: The PE
\nindustry’s liquidity bottleneck will likely continue to play
\nout over the next several years.
\n
\n
\nHugh MacArthur, Global Private Equity Practice Chairman at Bain
\n& Co., commented on this challenge: “We’re talking
\nabout a 5+ year problem as the GFC was, in order to process all of
\nthis liquidity. This is not going to go away in 2025 or 2026.
\nIt’s going to be continued pressure on the institutional LPs
\nfor liquidity over the course of the next several years.”
\n
\n
\n
\nWealth \/ 401k: The August executive order
\ncalling for expanded access to private equity for 401(k) plans and
\nparticipants has compounded on ongoing industry initiatives to
\nincrease private wealth offerings and grow retail investor
\nexposure.
\n
\n
\nFirms are seeing growth in fund offerings across asset classes,
\nparticularly credit, private equity, and infrastructure funds.
\n
\n
\n
\nIndustry consolidation: Executives at large PE
\nfirms anticipate a wave of industry consolidation, with scale and
\nproduct breadth allowing big players to dominate as smaller firms
\nrisk being squeezed out.
\n
\n
\nConsolidation may also play out inorganically through
\nacquisitions, as asset management M&A accelerates, and LPs show
\nstrong appetite for GP stakes strategies.
\n
\n
\n
\nRegional preference: Several PE firms
\nincluding Apollo, CVC, and KKR are optimistic about opportunities
\nin Europe.
\n
\n
\nEurope is boasting attractive underlying deal economics. The
\nlower base rates and spreads in Europe are facilitating access to
\ncheaper and higher levels of debt financing. Buyout multiples in
\nEurope also remain more attractive than in the U.S.
\n
\nA recent Preqin survey on investor sentiment showed Western
\nEurope attracting the most investor interest over the last six
\nmonths, seeing a 12-ppt jump in the proportion of respondents
\nciting it among markets offering the best opportunities.
\n
\n
<\/p>\n
\n![\"1681458e.jpg\"\/](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2025\/09\/1681458e.jpg\")
<\/a><\/p>\nThe content of this article is intended to provide a general
\nguide to the subject matter. Specialist advice should be sought
\nabout your specific circumstances.<\/p>\n","protected":false},"excerpt":{"rendered":"Key Takeaways
Deal activity: While deal count is down 5% on
a YTD basis compared to 2024,…\n","protected":false},"author":2,"featured_media":33047,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[114,85,46,190],"class_list":["post-33046","post","type-post","status-publish","format-standard","has-post-thumbnail","category-markets","tag-business","tag-il","tag-israel","tag-markets"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/33046","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=33046"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/33046\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/33047"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=33046"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=33046"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=33046"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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