JPMorgan M&A Chief Expects Slower Deals in 2027 as Private Equity Firms Weigh Exits

In a Nov. 6 interview, Charlie Bouckaert, who leads JPMorgan’s global Advisory and M&A business, said he expects dealmaking to slow in 2027, while investor demands could prompt private equity firms to seek liquidity later in the year.

Bouckaert sees some sponsors moving toward exits or other liquidity options in the second half of 2027. Aging portfolio companies, demands from investors for returns and refinancing decisions approaching in 2028 or 2029 could contribute to that pressure. He gave no estimate of how many firms might pursue liquidity or the value of potential exits.

“Ultimately, the private equity business model is reliant on exiting and returning capital to LPs,” Bouckaert said.

Sponsors may use continuation funds or secondary transactions to return capital. A continuation fund transfers an investment into a new fund managed by the same sponsor, giving existing investors an opportunity to cash out. In a secondary transaction, investors sell their stakes to new buyers. Continuation vehicles represented less than 10% of private equity exit value.

Private equity’s unsold portfolio was estimated at about 32,000 companies valued at $3.8 trillion. Holding periods for companies that have exited have also lengthened: the global average for buyout companies reaching an exit was seven years in 2024, compared with 6.3 years in 2021 and five years in 2010. Those figures cover buyout companies that exited in each year, not all companies still held by private equity funds.

Bouckaert expects 2027 deal activity to resemble the recent slower stretch, with somewhat fewer large transactions and activity remaining concentrated in bigger deals. In July 2026, he described announced M&A volume in the first half of the year as a record and expected activity to stay elevated through year-end. His latest outlook points to a slower pace the following year.