This week in charts
Corporate bond ownership
Global Corporate Bond market, by issuance currency
Sector inflows and outflows
Large cap inflows
Europe-focused equity fund flows
Europe-focused equity fund inflows by year
Growth expectations - S&P 500 Index vs. S&P/TSX Composite Index
FTSE250 Index vs. MSCI World Index
Dividend yield by region
U.K. mergers & acquisitions
Private equity sits on US$1 trillion amid uncertainties, M&A stalls, PwC says
Private equity firms are holding about US$1 trillion in unsold assets, PricewaterhouseCoopers (PwC) said on Wednesday — capital that, in a typical market environment, would have been returned to investors.
High interest rates in the United States, President Donald Trump’s on-again, off-again approach to tariff policy, and geopolitical uncertainties have eroded company valuations and contributed to firms holding onto portfolio firms far longer than expected.
The capital tie-up is playing a role in the slowdown in dealmaking. Mergers and acquisitions, a key barometer of global economic health, have stalled this year.
Despite entering 2025 with high hopes for an M&A rally under Trump, deal volume and value have remained largely flat year-over-year, with 4,535 deals totaling $567 billion through May, PwC said.
Private equity firms, which deploy LP capital into businesses across industries, currently have $3 trillion invested in 30,000 companies, according to PwC, with 30% held for longer than five years.
That is above the traditional timeline by which funds expect to have a profit on their investments.
So, now, PE firms need to be creative to squeeze profit from assets - often bought at peak prices, said Liz Crego, PwC’s industry markets leader. That includes selling a small portion of a business that can be more valuable as a separate entity, she said.
A more uncertain market has also led to a decline in cross-border deals to 16.9% of total activity, down from 18.7% in 2021. China-related deals, in particular, face heightened scrutiny and strategic reevaluation, PwC said.
Cautiously optimistic
The initial public offering (IPO) market has shown signs of life, with 31 traditional IPOs raising $11 billion through May. While April saw a pause due to tariff shocks, activity resumed in May and June, with fintechs like Chime, valued at $18.4 billion at its Nasdaq debut, leading the charge.
Special purpose acquisition companies (SPACs) are also making a modest comeback, with over 50 of those publicly traded shell companies created to raise capital through IPOs.
To unlock the $1 trillion held by PEs, the recession cloud over the U.S. would have to recede, Washington would need to provide clarity over tariffs and interest rates must decline, Smigel said.
Nevertheless, PwC expects M&A activity to improve in the coming quarters, with pressure from the LP funds looking for returns and as assets are repriced.
This week’s fun finds
Several EdgePoint partners from Québec came to visit and brought presents – locally made hot sauces from Britannia Mills. They were très épicées, but more importantly they were also délicieuses.
- Chaude Boucane (Hot Smoke) – a smoky sauce
- La Déraillée (The Derailed) – flavourful and creamy, with a hint of mustard
- La Grande Faucheuse (The Grim Reaper) – featured on Hot Ones, it’s Britannia Mills’ hottest sauce. The main ingredient are the Carolina reapers that give it its name. Not the hottest we tasted, but the hint of maple syrup saves us from the heat
How to Get Rid of Sunburn Fast, According to Dermatologists
So you got too much sun and didn’t apply (or reapply) your SPF. Now you’re wondering how to get rid of sunburn fast so you can get some relief for the lobster red, irritated skin. As diligent as we all are about wearing sunscreen, sunburns do happen, even to the best of us. Though you can’t get instant relief from a sunburn, there are plenty of ways to help your skin heal as painlessly and quickly as possible, according to our experts, board-certified dermatologists Flora Kim, MD, and Amy Ross, MD, and honestly, that counts for something.
