Latham’s Kelly Forecasts Private Equity-Fueled Second-Half Surge

Mega deals are expected to fuel a merger and acquisition (M&A) resurgence that will accelerate in the second half of 2026, with private equity firms playing a key role in maintaining the pace, according to Alex Kelly, a partner at Latham & Watkins. Kelly, speaking in an interview this week, indicated that the current slowdown in M&A activity is temporary and that a significant uptick is anticipated. He pointed to the substantial dry powder held by private equity funds, estimated to be in the hundreds of billions of dollars, as a primary driver for this projected surge. These funds are actively seeking deployment opportunities, and large-scale transactions are seen as the most efficient way to deploy capital and achieve significant returns. The legal and advisory sectors are preparing for this increased volume, with firms like Latham & Watkins anticipating a busy period advising on complex transactions. Kelly also suggested that the current economic climate, while presenting challenges, also creates opportunities for strategic acquisitions and consolidations, particularly among companies looking to gain market share or access new technologies. The forecast suggests a robust pipeline of potential deals, ranging from public-to-private transactions to significant carve-outs from larger corporations.