Download our Third Quarter 2021 M&A Update Here
M&A activity continues its record pace, supported by strong economic growth, borrower-friendly interest rates, and robust balance sheets. More than $1.8 trillion has been spent on North American M&A this year, topping $1.1 trillion and $1.6 trillion in the year-to-date periods of 2020 and 2019, respectively.
While these factors may continue to drive activity in the near-term, the Federal Reserve will likely raise interest rates to counter inflation, which may hamper activity down the road. This may impact valuations more than deal volume as an increasing number of Baby Boomers plan to retire.
Download our Third Quarter 2021 Financing Update here.
Record fundraising and exit activity are providing a boon for record U.S. venture capital investment. In fact, more capital has been deployed in each successive quarter thus far in 2021, and total spend is nearly double so far this year over the first three quarters of 2020. It continues to be an optimal time for early-stage companies looking to raise cash.
Private equity and other growth equity investment counts in the U.S. increased 45% compared to the same quarter of 2020, while deployed capital increased 9%.
Despite a dip in IPO activity, the market for IPOs is trending similarly to overall VC activity and is on pace for the best year since the tech-led boom of 2000.