A significant resurgence in mergers and acquisitions (M&A) is anticipated alongside a substantial uptick in infrastructure financing, primarily propelled by the burgeoning artificial intelligence (AI) sector. This outlook, shared by Christina Minnis, Goldman Sachs’s global head of credit finance, points to a strategic shift in corporate investment focus over the next several years, with strong optimism for late 2025 and into 2026.
After a challenging start to the year marked by volatility from US trade tariffs, M&A activity has begun to gather momentum over the summer. Minnis highlights a noticeable increase in the willingness of corporate boardrooms and financial sponsors to engage in transactions. This renewed enthusiasm is partly fueled by favorable credit markets, enabling companies to pursue acquisitions that might have previously been considered unattainable. Furthermore, some sponsor-backed portfolio companies are re-engaging in dealmaking following a period focused on dividend recapitalizations.
- M&A activity is showing renewed momentum after a volatile start to the year.
- Corporate boardrooms and financial sponsors are demonstrating increased willingness to engage in transactions.
- Favorable credit market conditions are facilitating previously challenging acquisitions.
- Sponsor-backed portfolio companies are re-entering dealmaking post-dividend recapitalizations.
AI Drives Infrastructure Investment
The demand for infrastructure supporting AI technologies is expected to be a dominant force behind this financing surge. The rapid expansion of AI necessitates massive investment in critical components such as data centers, enhanced electricity supply, and advanced communications networks. An analysis conducted by Bloomberg News last year projected that at least $1 trillion will be allocated to these essential infrastructure upgrades over the coming decade, underscoring the immense capital raising requirements.
Regulatory Shifts in Financing
The impact of regulatory frameworks is also shaping investment landscapes, particularly in Europe. Minnis notes that evolving regulations are likely to curtail the traditional role of banks as primary infrastructure financiers, redirecting a greater proportion of this capital into the broader capital markets. This shift suggests a more diversified approach to funding large-scale projects, reflecting both market dynamics and policy influences.
Michael Carter holds a BA in Economics from the University of Chicago and is a CFA charterholder. With over a decade of experience at top financial publications, he specializes in equity markets, mergers & acquisitions, and macroeconomic trends, delivering clear, data-driven insights that help readers navigate complex market movements.