Good morning, and Happy 2025! Here's what happened overnight and what you need to know today.
1.
IB view: Investment bankers expect a big rebound in US initial public offerings in 2025, driven by private equity firms seeking to monetise holdings amid buoyant equity markets and reduced regulatory pressures under the incoming Trump administration. The FT notes companies such as Klarna and Chime are expected to lead early listings, after US listings raised USD32 billion ($51.47 billion) in 2024, a 60% increase from 2023. Private equity-backed IPOs are set to dominate, reflecting a shift towards larger, more profitable companies. Meanwhile, Australia’s M&A activity in 2025 is expected to surge, supported by eased monetary policies, narrowing valuation gaps, and $18.4bn in "dry powder," The Australian noted. Australian M&A involvement grew modestly in 2024 (up 3%), but broader sector activity is forecast this year, also driven by stabilising inflation and stronger equity markets. Key risks include geopolitical uncertainty and regulatory challenges linked to Australia’s new merger regime from mid-2026.(FT)(The Australian)
2.
Boutique pivot: Centerview Partners, one of the few remaining private American boutique investment banks, may be open to strategic options like selling a stake or pursuing an IPO, The Wall Street Journal reported, citing co-founders Blair Effron and Robert Pruzan. The firm has attracted interest from major investors, while some of its 80 partners, particularly those over 60, are reportedly keen to monetise their shares. The founders acknowledged the possibility of change but stressed any deal would face a high threshold of justification. “It’s going to be a high bar,” Pruzan said. This interest follows a record 2024, with revenue reaching USD1.9 billion ($3.07 billion), up from $1.5 billion in 2023. Capturing 5.35% of US M&A advisory fees in 2024, Centerview remains a leader among boutique banks. If valued at a multiple comparable to its rivals, it could reach a public valuation of up to USD10 billion, the WSJ noted. (WSJ)(Capital Brief)
