DC Advisory's US Private Equity Mid-Market Monitor: Q1 2025 & Outlook

“Following the US election, we saw a notable run-up in the stock market that sparked optimism across the M&A market. However, that momentum has since been overshadowed by a growing environment of uncertainty - particularly around the implications of tariff policies. Yet, in our view, it is precisely these volatile environments that can create opportunity. With expectations building around a potential or even partial resolution on tariffs and broader macroeconomic stabilization, we anticipate that a meaningful recovery in both M&A and IPO activity could happen in late 2025 if there is a tariff resolution of some degree. Private equity firms - sitting on record levels of dry powder - remain active and continue to pursue resilient, high-quality assets. For sellers, the time to prepare is not when the window opens. History consistently shows that those who lean in early are best positioned to capitalize when the cycle turns, and those who wait for perfect conditions often miss the window.”