A top Wall Street financial executive stated that the stagnation in private equity deals is beginning to thaw.
"I feel like I've been saying this for several quarters, maybe even years," said Denis Coleman, Chief Financial Officer of Goldman Sachs Group, on Tuesday. "But I think we can now say it's happening."
Speaking at a financial services conference hosted by Goldman Sachs in New York, Coleman noted that deal activity initiated by private equity firms is finally rebounding across the industry, with announced transactions up 40% this year.
Private equity firms have faced pressure from high financing costs, making it more difficult to sell portfolio companies at certain valuations and prolonging the process of returning capital to investors. Earlier this year, global conflicts and U.S. tariffs led more executives and companies to pause deals, but activity has since picked up.
Coleman said Goldman Sachs has advised on deals worth over $1.5 trillion so far this year, benefiting from the resurgence.
"In terms of announced M&A transactions, this year could rank as the second-largest in history by deal volume," he noted.
He added that many "mega" financing deals are "in the pipeline." Such large-scale borrowing arrangements continue to grow in 2025, driven particularly by data center investments and other infrastructure projects linked to the AI boom.
Meanwhile, Cleveland-based KeyCorp highlighted family offices as another potential source of private equity deals. KeyCorp CEO Chris Gorman, speaking at the same conference, said family offices—which have flourished in recent years—are now driving more deal activity.
"What's unique about family offices is that, in many ways, they resemble private equity firms a decade ago," Gorman said. "They're acquiring a significant number of private businesses."
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