Key Takeaways
- • White & Case partner Dario de Martino, writing for Mergermarket, argues that rising interest rates will slow private equity's liquidity push rather than halt it.
- • De Martino expects the immediate effect of higher borrowing costs to fall on deal process, not on buyer appetite, with strategic buyers remaining active.
- • Higher financing costs could lengthen deal timelines and increase scrutiny of valuations.
Summary
In an article for Mergermarket published 30 October 2026, White & Case partner Dario de Martino examined how higher interest rates are affecting M&A activity. His central view, as framed in the piece, is that rate increases are likely to slow private equity's liquidity push rather than stop it.
De Martino notes that buyers continue to show interest in acquisitions despite rising rates, and that strategic buyer appetite in particular remains resilient even as borrowing costs climb. He states: "My expectation is that the immediate effect is on process rather than appetite."
The primary effect, according to de Martino, is therefore on how transactions are executed. Higher borrowing costs could lead to longer deal processes and greater scrutiny of valuations by prospective acquirers. For allocators and managers tracking private equity exit and liquidity timelines, the implication is that a higher-rate environment is more likely to extend holding periods and deal execution timelines than to remove demand for assets outright.
The source is a short commentary piece, and the full article is available through Mergermarket. The summary reflects the publicly available excerpt.
De Martino notes that buyers continue to show interest in acquisitions despite rising rates, and that strategic buyer appetite in particular remains resilient even as borrowing costs climb. He states: "My expectation is that the immediate effect is on process rather than appetite."
The primary effect, according to de Martino, is therefore on how transactions are executed. Higher borrowing costs could lead to longer deal processes and greater scrutiny of valuations by prospective acquirers. For allocators and managers tracking private equity exit and liquidity timelines, the implication is that a higher-rate environment is more likely to extend holding periods and deal execution timelines than to remove demand for assets outright.
The source is a short commentary piece, and the full article is available through Mergermarket. The summary reflects the publicly available excerpt.
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