Making Sense Mega deals and market shifts: 2025 investment banking recap and 2026 outlook
Dec 12, 2025
Anu Aiyengar, Global Head of Advisory and M&A at J.P. Morgan, and Kevin Foley, Global Head of Capital Markets at J.P. Morgan, share their insights on 2025's investment banking landscape and the outlook for 2026. They discuss the surge in mega deals driving M&A volume and the rollercoaster of investor sentiment and market liquidity. AI's transformative impact on deal structuring and fundraising is also explored. Looking ahead, they emphasize the importance of adaptability, seizing growth opportunities, and preparing for increased IPO activity and capital markets resilience.
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Cautious Optimism Turned Into Adaptability
- 2025 featured cautious optimism that evolved into operational adaptability as uncertainty persisted.
- Clients prioritized cost control, liquidity, and financial flexibility while selectively pursuing strategic growth.
Scale Commanded Premiums In 2025
- Mega deals (>$10bn) drove a 38% year-over-year increase in deal value, hitting decade highs.
- Markets rewarded scale through higher multiples and easier access to capital for larger companies.
Liquidity And AI Drove Sentiment Rebound
- Investor sentiment recovered after mid-year pauses, boosted by AI investment narratives and perceived supportive policy.
- Ample liquidity and refinancing drove steady increases in both equity and debt issuance late in the year.