Global deal-making and financing activity is set to rebound in 2025 following a challenging year as easing interest rates spark optimism across industries, according to new research by financial and corporate services provider Ocorian.
The survey of senior executives from asset managers, corporates, family offices, and professional service providers in 19 countries, revealed that 75% expect an increase in deal-making and financing over the next 12 months. Among these, 14% anticipate a significant uptick, while only 4% forecast a decline.
The findings come after a difficult year marked by high interest rates, with two-thirds of respondents reporting increased financing costs and 33% admitting to delaying or cancelling deals due to economic pressures.
Interest rates have been a dominant factor in shaping deal-making strategies, with only 12% of those surveyed saying their businesses were unaffected by the rate environment. Firms have adopted measures such as hedging strategies (74%), fixed-rate debt products (55%), and debt maturity management (47%) to mitigate the impact.
Richard Hansford, Head of Business Development for Fund Services at Ocorian, acknowledged the cautious optimism in the market: “The easing of interest rates is a welcome development, though inflationary pressures and debt challenges remain. Recent rate cuts have already led to increased deal activity, but further reductions are needed to sustain this momentum.”
Hansford also highlighted several factors shaping the year ahead, including geopolitical uncertainties and the potential impact of the US presidential election. “Clients are building pipelines for new deals, but the industry remains watchful of geopolitical tensions and their effects on the market. While challenges persist, the opportunities emerging now are a marked improvement from this time last year,” he added.
Ocorian’s research spans key regions, including the EU, UK, US, Canada, Asia, South Africa, and the Middle East. The firm is observing a shift in sentiment as inflation eases and deal flow picks up, particularly in alternative investments and capital markets.
