After a subdued period over the last two years, Mergers & Acquisitions (M&A) activity is gaining momentum. According to the Global Private Markets Report 2025 issued by McKinsey & Co., deal counts and values have increased, with a notable rise in buyouts. This uptick is expected to continue into the latter half of 2025, driven by improved debt financing conditions and a backlog of transactions. Deal structure nuances and the use of continuation vehicles are more prevalent, providing liquidity options for limited partners and allowing general partners to retain high-performing assets. The secondary market (sponsor-to-sponsor exits) is also experiencing growth. Despite the current environment presenting opportunities and signs of optimism, investors will likely require greater levels of due diligence to gain the comfort they need to sign and successfully close transactions.
As deal activity accelerates and competition intensifies, the stakes for both buyers and sellers have never been higher. In this dynamic environment, a robust due diligence process is essential—not only for uncovering risks and validating value, but also for ensuring that transactions proceed smoothly from negotiation to integration.
