Key Takeaways
- • Alex Kelly, Global Co-Chair of Latham & Watkins' M&A and Private Equity Practice, provided market outlook commentary during SuperReturn Berlin on June 10, 2026, addressing dealmaking trends, exit strategies, and secondaries market expansion.
- • Kelly forecasted that 2026 M&A activity would follow a pattern similar to 2025, indicating continued market momentum in the private equity and dealmaking sectors.
- • The secondaries market continues to experience notable growth, representing a key area of focus for private equity strategists navigating exit options and portfolio management.
- • Artificial intelligence has become integral to deal execution at Latham & Watkins, with Kelly noting that AI integration now occurs across substantially all active transactions to improve speed, efficiency, and analytical capability.
Summary
Alex Kelly, Global Co-Chair of Latham & Watkins' M&A and Private Equity Practice, discussed the current dealmaking landscape and forward outlook during a Bloomberg TV appearance at SuperReturn Berlin on June 10, 2026. Her remarks addressed three core areas: the M&A market outlook, strategic exit considerations for portfolio companies, and the accelerating growth of the secondaries market.
Kelly's assessment of 2026 dealmaking suggests continuity with 2025 activity levels, signaling that the market remains stable without dramatic shifts in transaction volume or pricing dynamics. This outlook reflects a sustained environment for both strategic and financial buyers pursuing acquisitions and portfolio construction, though deal quality, sector concentration, and covenant structures remain critical variables for investors.
Exit strategy remains a central concern for fund managers navigating the current macroeconomic environment. The secondaries market has emerged as an increasingly important exit channel, allowing general partners to monetize positions before traditional IPO or sale opportunities materialize. The growth of this market segment—driven by dry powder accumulation among secondary funds and continuation funds—provides liquidity alternatives that were less readily available in prior market cycles.
A notable dimension of Kelly's commentary centered on technology adoption in deal execution. She emphasized that artificial intelligence has become pervasive across Latham's transaction practice, with virtually all active deals incorporating AI tools to enhance analytical speed, document review efficiency, and deal team productivity. This technological shift reflects broader industry trends toward automation of routine legal and financial processes, potentially affecting deal margins and timeline compression across the private equity ecosystem.
Kelly's assessment of 2026 dealmaking suggests continuity with 2025 activity levels, signaling that the market remains stable without dramatic shifts in transaction volume or pricing dynamics. This outlook reflects a sustained environment for both strategic and financial buyers pursuing acquisitions and portfolio construction, though deal quality, sector concentration, and covenant structures remain critical variables for investors.
Exit strategy remains a central concern for fund managers navigating the current macroeconomic environment. The secondaries market has emerged as an increasingly important exit channel, allowing general partners to monetize positions before traditional IPO or sale opportunities materialize. The growth of this market segment—driven by dry powder accumulation among secondary funds and continuation funds—provides liquidity alternatives that were less readily available in prior market cycles.
A notable dimension of Kelly's commentary centered on technology adoption in deal execution. She emphasized that artificial intelligence has become pervasive across Latham's transaction practice, with virtually all active deals incorporating AI tools to enhance analytical speed, document review efficiency, and deal team productivity. This technological shift reflects broader industry trends toward automation of routine legal and financial processes, potentially affecting deal margins and timeline compression across the private equity ecosystem.
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