This story was originally published on CFO.com. To receive daily news and insights, subscribe to our free daily CFO.com newsletter. The M&A market is sending conflicting messages as 2025 closes. Deal value in the third quarter hit its highest level in almost four years, powered by a return of megadeals and stronger equity markets. Yet overall deal volume has barely moved. New early findings from Deloitte’s 2026 M&A Trends Survey show that dealmakers are optimistic about next year, but the sharp rise in lar ...

If the key driver of success in a private equity holding is great managers incentivized with skin in the game, that seems a good place to start https://t.co/e4IVk56KJs ...

Market Overview & Strategy - Morgan Stanley Private Wealth Management suggests scaling back on big cap technology, not removing it entirely, due to run-ups and performance issues [2][3][5] - The firm advocates for a more equal-weighted approach, diversifying into the 493 stocks in the S&P 500 beyond the top seven [4][5] - The firm favors basic, generic companies that can leverage AI for growth, rather than focusing solely on AI companies [7] Private Markets & Investment Opportunities - The firm is increasing client involvement in private markets, including private equity, private credit, and private infrastructure, to capture wealth creation happening before companies go public [8][9][10][11] - Private infrastructure investments now include data centers and cell towers, reflecting evolving opportunities [11][12] Portfolio Allocation & Risk Management - Traditional 60/40 (equity/fixed income) portfolio allocations are evolving, with a potential shift towards 55% in equities and increased allocation to alternatives [12][13] - The firm views municipal bonds as potentially strong investments in the first quarter of next year [13][14] - Clients are showing curiosity and interest in crypto, primarily through ETFs, but are still in the early stages of understanding [14]

Industry Trends - Private equity is entering a phase exposing firms that benefited from ultra-low interest rates [1] - Some firms "truly delivered" while others simply benefited from a long period of ultra-low interest rates [1] Key Players - Apollo Global Management's David Sambur commented on the private equity phase [1]

Core Insights - The advisory M&A market is experiencing record activity, with expectations for continued growth into 2026, despite smaller firms pulling back due to increased competition among mid-sized sellers [1][2]. Group 1: Market Activity - A record 94 deals were completed in the third quarter, positioning the market to exceed 300 transactions by the end of the year, marking an all-time high [2]. - Private equity (PE) is significantly influencing RIA dealmaking, driven by interest rate cuts from the Federal Reserve, which have reduced capital costs [4]. - Sub-acquisitions have reached a record high, accounting for nearly one-third of all transactions, while minority transactions represent 14% of total deals [6]. Group 2: Competitive Landscape - Mid-sized companies are increasingly active in the M&A market, seeking to acquire a wider range of services to remain competitive as they grow beyond boutique clients [5]. - The market is evolving, with a broader range of buyers and sellers, and many firms are exploring different business models to adapt to changing client needs [4][5]. - Medium-sized sellers, managing between $501 million to $1 billion in assets under management (AUM), have completed nearly 30% more deals in 2024 compared to the previous year [6].

Private Equity Activity - Gaw Capital Partners 获得了一笔以房地产为支持的贷款延期 [1] Financial Details - 该贷款原定于周一到期 [1]

Industry Focus - Large chains are appealing, but babies thrive with attentive caregivers [1] - It's uncertain if private-equity backed centers provide sufficient attention [1]

Asset Allocation Trends - Tiger 21 members favor private equity, allocating 30% of their assets [2] - Public equity accounts for 23% and real estate for 26% of members' portfolios [3] - Crypto holdings have doubled in the last year, now representing 2% of total assets, equating to $5 billion [3] - Hedge fund allocations have decreased from 6-7% to 2%, due to underperformance compared to index funds [6] - Fixed income allocations remain low [7] Investment Strategy & Philosophy - Members are shifting towards smaller midcap private equity funds and direct investments [8] - They prefer being actively involved in companies, seeking board positions to address problems early [9] - The group emphasizes long-term investments, not short-term market fluctuations [13][14] - Members are exploring investment opportunities in AI infrastructure, including chip manufacturers and energy providers [14][15] Membership & Wealth Creation - The average age of Tiger 21 members has decreased from 59 to 51, indicating faster wealth creation [15] - Members are primarily entrepreneurs who have experienced a liquidity event [10] - The focus shifts from wealth creation to wealth preservation after achieving significant wealth [10][11] - Building wealth through basic, steady businesses like franchises is highlighted as a lower-risk approach [18][19]

Market Share & Investment Strategy - Private-equity firms control 10-12% of America's child-care market [1] - The firms' investment strategy is two-pronged [1]

Private Equity Trends - Private equity firms are increasingly using established strategies due to difficulties in finding buyers for their investments [1]