Private equity giant Blackstone Inc. (NYSE:BX) said that the long-awaited recovery in global dealmaking is now firmly underway, with executives pointing to accelerating IPO and M&A activity following a multi-year freeze.
Deal Cycle Has Hit ‘Escape Velocity’
During the company’s fourth-quarter earnings call on Thursday, Chief Operating Officer Jonathan Gray said, “This is an exciting time for Blackstone, with three powerful dynamics coming together,” pointing to the reopening of the deal cycle, rising investment tied to artificial intelligence and growing adoption of private markets across investor channels.
Gray said the firm is now seeing the resurgence it had been anticipating, following several years of subdued transaction activity. “IPO and M&A activity are accelerating, deal sizes are increasing, and sponsor activity is picking up,” he said.
According to Blackstone, global IPO issuance surged 40% year-over-year during the fourth quarter, including a two-and-a-half-fold increase in the U.S. alone.
The firm …