Dealmaking slows as GPs digest tariffs, says Bain & Co; Infinitas Capital readies three portcos for listing

Bain & Co. reports a slowdown in dealmaking activity as general partners assess the impact of tariffs. Separately, Infinitas Capital is preparing three portfolio companies for public listings, while KKR has conditionally increased its offer for a Frankfurt-listed IT services provider, indicating continued, albeit selective, activity in the market.

Analysis

Current market conditions reflect a discernible slowdown in overall dealmaking activity, as general partners digest the impact of tariffs, according to Bain & Co. This cautious environment is underscored by a mixed general sentiment score of 0.0 and a moderate market impact score of 0.5. Despite this broader deceleration, specific strategic moves continue; Infinitas Capital is notably preparing three portfolio companies for public listings, suggesting an ongoing, albeit selective, appetite for exits. Concurrently, KKR & Co. Inc. (KKR), which carries a slightly positive individual sentiment score of 0.4, has conditionally increased its bid for a Frankfurt-listed IT services provider, indicating persistent M&A interest in specific sectors like technology services. These activities highlight a nuanced market where overarching caution related to 'Tax & Tariffs' coexists with targeted 'M&A & Restructuring' and 'Private Markets & Venture' initiatives.

Key Decisions for Investors

• Investors should closely monitor tariff developments and their potential to further dampen M&A activity across various sectors.
• Adopt a selective investment strategy, focusing on companies with strong individual catalysts or those in resilient sectors, such as the IT services space targeted by KKR.
• Evaluate upcoming IPOs from private equity portfolios, like those planned by Infinitas Capital, on a rigorous, case-by-case basis, considering the specific merits of each company rather than broad market exit trends.
• For holdings in or exposure to KKR, the increased bid signals active capital deployment, but the conditional nature of the offer warrants attention to deal progression and target company fundamentals.