US Brokers and Asset Managers: Brownie Points: IB Activity in Focus

Weekly "Brownie Points" publication highlights key points and emerging trends across asset managers & brokers. Point 1: At a conference this week, MS struck a cautiously optimistic tone on M&A and sponsor activity, stating we are in the early-to-mid innings of the current M&A cycle, supported by strong boardroom confidence, healthy credit conditions, tight spreads, elevated PE dry powder and a significant monetization backlog. Importantly, MS emphasized PE exits should be viewed as an 18-24 month (or longer) cycle, not a 6-month surge. Supporting future demand is a record 100+ PE sell-side mandates and estimates that roughly 1,500 U.S. PE-owned companies are worth over $1B. Our Take: the early-to-mid innings characterization may be right, but consensus expectations remain elevated;