Pent-Up Demand for Mergers and Acquisitions to Fuel Deal Surge
Demand for mergers and acquisitions (M&A) has been building, particularly among private equity firms, and is expected to drive a surge in deal activity, according to Morgan Stanley CEO Ted Pick.
"We've been below trend line in the M&A market," Pick said at the World Economic Forum in Davos. "We talk a couple years from now, I think we'll be at trend line or higher."
Private equity firms have been an important catalyst in this trend, and Pick cited Morgan Stanley's pipeline for M&A as the highest in seven years.
Wall Street has welcomed President Donald Trump's second term, viewing his pro-growth agenda as beneficial to the finance industry. Filippo Gori, co-head of global banking at JPMorgan Chase & Co., said that the new administration has "brought the animal spirits back to the market."