Global financial markets witnessed a qualitative and historic transformation during 2025, as the value of global deals exceeded the $4 trillion mark for the first time since the major boom that the markets witnessed in 2021. According to the latest data issued by the London Stock Exchange Group, the total value of deals reached approximately $4.5 trillion, thus registering a huge increase of nearly 50% compared to the levels of 2024.
The return of mega-deals and American dominance
This surge wasn't merely a fleeting numerical increase; it was driven by a resurgence of "mega-deals." Sixty-eight deals exceeding $10 billion each were finalized, directly reshaping the landscape of numerous vital sectors, from media and entertainment to heavy industry. This trend reflects the desire of major corporations to bolster their competitive positions through strategic acquisitions rather than slow, organic growth.
In terms of geographic distribution, the United States has cemented its position as the engine of this global growth, with American companies accounting for more than half of the total deal value, reaching $2.3 trillion. This is the highest percentage of US companies in total global activity since 1998, indicating the attractiveness of the US investment environment in 2025, supported by deregulation and easier access to finance.
The banking sector's recovery and the paradox of number versus value
This momentum had a positive impact on the investment banking sector, which saw a significant rebound in returns. Investment banking fees rose 9% year-on-year to approximately $135 billion, marking their second-highest level on record, reflecting the recovery of Wall Street and global investment banks from previous downturns.
Despite these record figures in the "value" of deals, the scene contains a striking paradox; the total number of deals decreased by 7% to reach its lowest level since 2016. This discrepancy between the increase in value and the decrease in number confirms that 2025 was the year of the "big players," as liquidity was concentrated in huge quality deals instead of being scattered across a large number of small and medium-sized deals.
Private equity challenges
On another front, despite the overall recovery, private equity firms continue to face varying challenges. While the value of private equity deals rose by approximately 25% to reach $889 billion, the sector still struggles with exits, putting pressure on available cash for reinvestment in the near future.
