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Bravo to deals

Stop if you’ve heard this one before: M&A activity will come back soon. Thoma Bravo is the latest firm to put its belief in this finally happening — if as expected rates come down.

“I think it will increase sponsor activity,” Erwin Mock, managing director and head of capital markets, said in answer to a question about rate cuts at a breakfast event the firm hosted this week in New York.

“With so much dry powder, these private equity firms have to put that money to work and I’m hopeful that the lower interest rates will be one of the catalysts,” he added.

Despite inflation remaining stubbornly above the Fed’s target, there is still belief in the market the Fed will cut rates. The US election being sewn up as quickly as it was has the market more confident that good times are ahead for dealmakers.