JPMorgan Says IPO and M&A Activity Is Picking Up This Year

Source: Coindoo Original Title: JPMorgan Says IPO and M&A Activity Is Picking Up This Year Original Link: JPMorgan Chase is entering the year with confidence that dealmaking activity has room to accelerate, even as markets contend with geopolitical tensions and uneven economic signals. Executives at the bank say client appetite for both IPOs and mergers remains stronger than headlines might suggest.

JPMorgan Chase sees a busy pipeline forming across regions, according to Matthieu Wiltz, who oversees investment banking operations in Europe, the Middle East, and Africa. Speaking in a television interview, Wiltz said corporates and sponsors are increasingly prepared to move ahead with transactions when market windows open, rather than waiting for ideal conditions.

Key Takeaways

• JPMorgan expects stronger IPO and M&A activity this year despite geopolitical and economic uncertainty.
• Client demand for public listings and deals remains solid, with companies willing to act when market windows open.
• The bank sees its financing capacity as a key advantage over private credit firms but is becoming more selective.
• Rising risks in private credit are pushing JPMorgan to tighten due diligence and walk away from weaker deals.

Deal Flow Holding Up Despite Uncertainty

Wiltz said JPMorgan is seeing steady momentum across both IPOs and M&A, with companies showing a willingness to test public markets and pursue strategic transactions. He noted that while volatility and geopolitical risks persist, many clients view current conditions as workable rather than prohibitive.

That confidence is backed by recent performance. JPMorgan ranked among the world’s top IPO underwriters last year as the overall value of new listings rebounded sharply, even after activity briefly slowed following U.S. tariff announcements in the spring. The bank was also active in major buyout financings, including high-profile transactions such as the sale of Electronic Arts.

Financing Strength as a Competitive Edge

One advantage JPMorgan continues to lean on is its balance sheet. Wiltz said the bank’s ability to provide financing alongside advisory services gives it an edge when competing with private credit firms that have become increasingly influential in dealmaking.

At the same time, he stressed that JPMorgan is being more selective. With liquidity abundant across markets, Wiltz said the bank is prepared to walk away from transactions where protections for lenders are insufficient. In his words, excess capital does not justify compromising on covenants or risk standards.

Lessons from Private Credit Stress

Caution around private markets has grown since last year’s collapse of Tricolor Holdings, a subprime auto lender whose failure resulted in losses for several banks, including JPMorgan. The episode prompted Jamie Dimon to warn that similar stress could surface elsewhere in the private credit ecosystem.

Wiltz said those concerns are shaping how JPMorgan approaches deals today, particularly as more co-investors participate alongside banks and private credit funds. Greater collaboration, he noted, increases the need for rigorous due diligence and disciplined underwriting.

Optimism Tempered by Discipline

Overall, JPMorgan’s outlook blends optimism with restraint. While the bank expects a healthy flow of IPOs and acquisitions in the months ahead, executives are signaling that growth will not come at any cost.

For JPMorgan, the message to clients and investors is clear: opportunities are there, demand is real, but the bank intends to remain selective as it navigates an environment defined by both excess liquidity and rising risk awareness.