A month into 2025 and there is still plenty of anxiousness surrounding M&A.
When will it happen? Will the valuation divide between buyers and sellers narrow? What impact, if any, will tariffs have on dealmaking?
These are some of the questions that will be explored at the Opus Connect Private Debt Deal Connect and Summit set for Feb. 19-20 in New York at Ice Miller LLP. LFI will be moderating a panel on “Navigating LP Pressure” and “Market Dynamics Amid M&A Shortage and What it Means for Private Credit.”
Against the backdrop of a favorable regulatory environment for M&A and stronger capital markets, there’s high expectation for a recovery from the dearth of activity the previous couple of years. In fact, Proskauer’s Trends in Private Credit Report, released today, underscores this widespread belief, with 91% of all survey respondents expecting deal activity to increase in the coming 12 months versus the previous year.
“All signs point to a strong rebound in M&A in 2025,” said Joseph Weissglass, managing director at Configure Partners. “We haven’t seen a significant uptick yet, but the fundamentals are there.”
Weissglass will participate in a panel at the Opus Connect event alongside industry experts to discuss the current market dynamics and the implications of changing rates on dealmaking, the sustainability of add-ons and strategies for winning deal mandates in a competitive market in need of differentiated opportunities.
With Morgan Stanley projecting strong EBITDA growth among BSL borrowers, “decent” results among middle-market company earnings also may be likely. What’s more, leverage among private credit borrowers decreased over the last several years, to 5.5x as of Q324 from 6.4x at year end 2022, according to Fitch Ratings.
Come join us Feb. 19-20 as we discuss whether these favorable data points portend an active 2025 along with other developments in the private credit arena, including the future of AI on the asset class and regulatory issues.
Krista Giovacco
krista.giovacco@levfininsights.com
+1 917 757 6399
