Leveraged Loan Survey Results: What do you expect for M&A/LBO deal flow in 2025

New year, new administration and improving US economic outlook have combined to bring a much needed boost to market psyche when it comes to hopes for new money deal flow in 2025. Respondents to LSEG LPC’s 1Q25 Outlook survey are especially optimistic about M&A prospects. Among leveraged lenders, a whopping 63% of survey respondents note that momentum for more M&A/LBO deal flow is expected to build in 2025, up from 22% who felt this way heading into 4Q24. An additional 13% believe that there will be significant uptick, up from 11%. There are some caveats or dependencies to building a successful 2025 calendar. Lenders note that that Trump policies and the ability to implement them will play a role as well as the overall regulatory environment and its support for M&A generally.