Making Sense Opportunities and headwinds for financial sponsors in 2025
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May 20, 2025 Ray Raimondi, the Head of North America Strategic Investor Group M&A at J.P. Morgan, shares insights on the evolving landscape for financial sponsors in 2025. They discuss how recent market changes are steering investment strategies, especially in sectors like business services and healthcare. Raimondi emphasizes the adaptability required for mergers and acquisitions amid economic uncertainties. The conversation also highlights the rise of sponsor-owned companies and the importance of local insights in developing innovative capital solutions.
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Sponsors Adapt Post-Tariff Shock
- Financial sponsors faced a challenging prior three years with under-deployment and under-monetization.
- Sponsors are now adapting and pivoting strategies to operate successfully despite recent tariff setbacks.
Concentric Circles of M&A Activity
- Market uncertainty creates both opportunities and challenges for M&A activities.
- A company's proximity to core sectors like North American services impacts its M&A options.
Start M&A Preparation Early
- Clients should start preparing early for M&A processes, as it takes months to get ready.
- The financing markets are wide open, so begin planning exits now rather than waiting to go public.