Overview
In a Bloomberg TV interview conducted at the SuperReturn conference in Berlin, Alex Kelly – global co‑chair of the M&A and private‑equity practice at Latham & Watkins – projected that mega‑deal activity will underpin a pronounced surge in mergers and acquisitions during the second half of 2026. She emphasized that the underlying fundamentals remain robust, with ample financing available and a substantial pool of private‑equity dry‑powder ready for deployment.
Private‑Equity Backlog and Secondaries
Kelly highlighted that secondary‑market transactions reached $240 billion in 2025, a volume that is approximately ten times the level recorded in 2013. This surge reflects both a massive backlog of assets that private‑equity sponsors need to monetize and the continued availability of capital to fund such exits.
Consolidation Trend
According to Kelly, the industry is moving toward further consolidation. She noted that six asset‑management firms accounted for 60 % of all limited‑partner (LP) capital in the prior year, indicating that larger managers are acquiring smaller firms to fill strategic gaps in their platforms.
Market Sentiment and Deal Timing
Kelly observed a growing acceptance that volatility and uncertainty are permanent features of the current environment. Consequently, firms are increasingly reluctant to remain on the sidelines, recognizing an opportunity cost to waiting for “perfect” market conditions. This sentiment is driving a more aggressive approach to deal execution.
Implications
The combination of abundant secondary‑market activity, concentrated LP capital among a few large managers, and a willingness to act amid ongoing volatility suggests that the second half of 2026 could see heightened M&A deal flow, particularly in sectors where private‑equity sponsors hold sizable asset portfolios.