Goldman Sachs CEO David Solomon predicts rise in dealmaking activity from financial sponsors
David Solomon expects financial sponsors to boost dealmaking as they face pressure to return capital. He also sees strategic M&A activity rising this year.
Insights:
David Solomon, the Chief Executive Officer of The Goldman Sachs Group, Inc. , stated at the UBS Group AG financial services conference today that financial sponsors may soon bolster dealmaking activity. Solomon observed that private equity firms are facing increasing pressure to return capital to their investors before launching new fundraising efforts. This necessity to provide liquidity is expected to "reduce the emphasis on valuation" during negotiations, potentially clearing the way for a higher volume of transactions.
