What We’re Reading: Week of September 19, 2025

PE Smells Opportunity as Fed Cuts Borrowing Costs

Source: Mergers & Acquisitions Magazine -Private Equity - September 18, 2025

Key Takeaway: The M&A market, for both private equity and strategic buyers, could see a renewed boost following the Federal Reserve's 25 basis point (0.25%) Fed Funds rate cut. This, along with recent initiatives to integrate private investments into 401(k) plans and the considerable dry powder at PE firms' disposal, creates a promising environment for increased deal activity in the upcoming months. However, the prospect of additional rate cuts is not guaranteed. You may be asking yourself ‘What does this mean for me?’

PE Funds: Whether you are launching a new investment vehicle or deploying existing dry powder, clients should consider their fund structuring options, fund administrator capabilities and capacity given upcoming year-end timelines, investor reporting requirements, as well as your deal level analytics by the investment team. Clients should be prepared to answer these questions in real-time in order to get ahead of potential roadblocks.

Middle Market firms: Whether strategic buyers are knocking or you're contemplating a liquidity event, we urge you to get a clear picture of your firm's financials. Developing a roadmap for measuring and benchmarking your KPIs will drive progress and position you for success.