Blackstone's Bold Outlook: IPO Surge and AI Booms Fuel 2025 M&A Ambitions

Blackstone is optimistic about a favorable environment for mergers, acquisitions, and IPOs in 2025, aiming to double its investment exits. The buyout firm sees opportunities in artificial intelligence and expects lower interest rates to support large leveraged buyouts as the U.S. economy strengthens.

Blackstone anticipates an improved landscape for mergers and acquisitions and a revival in initial public offerings by 2025, enabling the company to more than double its investment exits, according to a senior executive speaking with Reuters.

"IPO markets are open, and the cost of capital has decreased," stated Martin Brand, head of North America private equity at Blackstone, during the Reuters NEXT conference in New York. Brand highlighted the positive growth potential tied to the booming artificial intelligence sector and reduced interest rates, which improve the outlook for leveraged buyouts.

With recent acquisitions like Jersey Mike's Subs and AirTrunk, Blackstone exemplifies the trend of increasing deal activity, foreseeing a strong U.S. economy as a catalyst for future M&A efforts. The investment giant manages about $1.1 trillion in assets, eyeing AI as a significant growth avenue.

(With inputs from agencies.)