Private equity firms and other financial sponsors are entering a critical phase where the need to return capital to investors is accelerating merger and acquisition activity, Goldman Sachs CEO David Solomon told attendees at the UBS Financial Services Conference on Tuesday, February 10, 2026.
The comments signal growing optimism for a robust M&A environment in 2026, fueled by sponsor activity, strategic corporate deals, and supportive macroeconomic tailwinds. Solomon, speaking on a panel, highlighted the mounting pressure on sponsors to distribute proceeds from exits before launching new fundraising.
“With respect to sponsors, we’ve all kind of been waiting impatiently for that to accelerate. I think we’re reaching a point where it’s accelerating,” he said.
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He added that valuation sensitivity is diminishing as sponsors prioritize returning capital: “Whether they’re going to the M&A market or they’re getting stuff public, they’ve got to return more capital.”
The Goldman CEO also expressed strong confidence in corporate-led strategic M&A, predicting activity would be “meaningfully higher” than the five-year average.
“There’s very little to likely upset that path on the strategic stuff,” Solomon said, citing a favorable macro backdrop including U.S. fiscal stimulus, deregulation, and a technology supercycle.
He noted that midterm elections often bring populist, stimulative policies: “We have midterm elections, and a president here in the United States who is going to take populist actions as we head to those midterm elections, and those populist actions have a tendency to be stimulative.”
Solomon’s remarks come after Goldman capped a strong 2025, beating Wall Street expectations for fourth-quarter earnings in January 2026, driven by a surge in dealmaking and trading revenue. The firm advised on several blockbuster transactions last year, including the $55 billion leveraged buyout of Electronic Arts and Alphabet’s $32 billion acquisition of cloud security firm Wiz. These deals helped Goldman retain its top position in global M&A advisory league tables, with $1.48 trillion in total deal volume and $4.6 billion in fees.
JPMorgan Chase Co-CEO of the Commercial & Investment Bank Troy Rohrbaugh, speaking at the same conference, echoed Solomon’s optimism.
“The pipelines continuing through the end of ’25 into ’26 look excellent. I think it can be really possibly one of the better years we’ve seen in a very long time in M&A, or certainly in that top decile,” he said.
Rohrbaugh cautioned that capital markets activity is unlikely to match the extraordinary SPAC-fueled volumes of 2020-2021, but he highlighted a “very robust IPO pipeline” as a positive offset. The convergence of sponsor pressure and strategic buyer interest comes after a period of subdued M&A activity following the post-pandemic boom.
Private equity firms, sitting on record levels of dry powder (uninvested capital commitments), face increasing urgency to generate returns for limited partners before launching new funds—a process that typically takes 18-24 months. This dynamic often leads to more aggressive pursuit of exits, even at slightly compressed multiples, creating opportunities for strategic acquirers and supporting overall deal volume.
Goldman’s bullish outlook aligns with recent market signals. Global M&A volumes in Q4 2025 showed signs of recovery, with increased activity in technology, healthcare, and financial services. The technology supercycle—driven by AI infrastructure buildout, cloud adoption, and digital transformation—continues to fuel strategic acquisitions, while deregulation and fiscal stimulus under the Trump administration are expected to create a more favorable environment for dealmaking.
The combination of sponsor exits and corporate strategic activity could drive a “virtuous cycle” in 2026, with increased deal flow supporting higher advisory fees, improved liquidity for investors, and renewed confidence in the M&A market. However, challenges remain, including elevated interest rates (though easing), geopolitical risks, and regulatory scrutiny of large transactions.
The outlook reinforces Goldman Sachs’ position as a leading M&A advisor. The firm’s 2025 performance—topping global league tables once again—demonstrates its ability to capture value in a recovering market. Solomon’s comments, alongside Rohrbaugh’s endorsement, suggest Wall Street expects a strong year ahead for dealmakers, with financial sponsors playing a pivotal role in unlocking pent-up activity.