JPMorgan executives have expressed growing optimism regarding the potential for increased initial public offerings (IPOs) and mergers and acquisitions (M&A) throughout this year. They attribute this positive outlook to a solid deal pipeline and enhancing market conditions.
The bank”s investment banking division has seen a significant uptick in activity, a trend that follows a notable rebound in global dealmaking over the past year.
Robust Deal Pipeline Signals Confidence
According to Matthieu Wiltz, the pipeline for both IPOs and M&A at JPMorgan is described as “very robust.” This reflects a resurgence in corporate confidence and ongoing demand from investors. Notably, activity in equity capital markets has increased as issuers capitalize on favorable valuations, improved market stability, and a heightened risk appetite among investors.
M&A Volumes Experience Significant Recovery
Supporting this optimism, data indicates that global M&A volumes surged by 41% year-over-year in 2025, demonstrating a substantial recovery from the previous year”s downturns. Executives at JPMorgan anticipate that this momentum will persist as firms seek strategic transactions amid favorable financing conditions and ample liquidity.
Macro Factors Favoring Dealmaking
The bank credits several macroeconomic and structural factors for this enhanced outlook. These include a resilient global economy, robust corporate earnings, and a substantial pool of liquidity that is eager for productive investment opportunities. Additionally, expectations that major central banks are nearing the end of their easing cycles have created a clearer environment for dealmakers. The emergence of an AI supercycle is also seen as a significant driver, fueling record capital expenditures and rapid earnings growth across various sectors.
Maintaining Cautious Optimism
Despite the generally positive environment, JPMorgan is exercising caution. Executives noted an increased vigilance regarding private market risks. They have, in some instances, opted to decline transactions that lack sufficient covenants or protective measures. This more selective approach reflects lessons learned from recent market cycles, emphasizing the importance of prioritizing deal quality over sheer volume.
Looking ahead, JPMorgan expects that M&A activity will increasingly focus on de-conglomeration strategies and buy-and-build models. The bank is particularly interested in sectors poised for long-term growth, including artificial intelligence, infrastructure, cooling technologies, and power supply, all of which are currently experiencing rising investment demands and technological advancements.
In summary, JPMorgan”s outlook suggests a constructive yet disciplined environment for dealmaking, with increasing momentum in both IPOs and M&A as market confidence continues to strengthen.
