From strategy to execution: how private equity is shifting in 2025

Welcome to FinTech TV.

I'm May Blair.

Well, we're entering a new phase in private equity, one defined by surging deal volume, geopolitical complexity, and a shift from experimentation to execution, and firms are doing so much for more than just looking to deploy capital.

They're looking to drive value faster, navigate uncertainty smarter, and also learn from the best operators out there.

Joining me live at the New York Stock Exchange to talk strategy, speed, and also scaling in a changing.

World is Jim Neeson, managing partner and founding executive at Carter Group, a global accounting advisory firm.

Jim, thank you so much for joining me.

Thank you, Remy.

Good morning.

Well, first and foremost, 2025 has been the most unprecedented of years, and we've been seeing plenty of volatility across the world when it comes to markets as well as assets.

So first and foremost, a lot of the things that we're seeing so far, not on our bingo cards.

So give us your take.

Yeah.

Big uncertainty was not at the center of the bingo card at all, you know, and I think there was a lot of optimism coming into 2025 around IPOs and M&As and financing transactions.

And then with the big t word tariffs, then all of a sudden we're kind of navigating what the rules are.

There's still a lot of optimism going into 25 and 26 with companies in the queue thinking about future liquidity events, but I think let's get all this dust settled.

Let's kind of really figure out what the game plan is going forward.

And of course you're here at the New York Stock Exchange.

We are expecting an IPO today, but first and foremost, tell me what's behind the jump in deal volume so far this year.

Yeah, I think a lot of it is companies have been in the gym the past 2 to 3 years really focusing on revenue, profitability, and building out their story.

So in a lot of ways it's been.

It's almost like nature in a way, right, natural selection, you're letting the best rise to the top.

You have the proof assets that are looking to go out now, right?

They're recession proof, inflation proof, maybe tariff proof, but I think there's a lot of companies in the queue that really now are honed and ready to execute in the IPO and the M&D markets.

And of course when we take a step back and look at the bigger picture, whether we're talking about the US or even areas outside of the states, we know that this overhang of tariff uncertainty does continue to dominate.

So when it comes to global tensions as well as tariffs, are they forcing firms to rethink where and what they're investing in right now?

Yes, you know, I think I love is the US markets have 60% of the market cap in the world, right?

They have 40% of the profits in the world and the US is 26% of GDP.

So I think even though there's this uncertainty piece, you have clarity that the US markets really are the hub, right?

We're at the New York Stock Exchange.

We're at the financial center of the world.

I do think companies really want to understand what this new rulebook is going to be going forward.

It does it change pricing?

Does it change quantity of customers in terms of buying US consumption international?

Does it change manufacturing or cost structure?

So there's still some very important questions out there, but the news cycle has been pretty good that, hey, maybe you know we have the UK announcement today.

Let's sort of understand the rule book.

We're a very resilient and strong economy, then let's move forward back into a growth growth mode.

And as you mentioned, we're here at the New York Stock Exchange, hundreds upon hundreds of publicly listed companies.

And speaking of hundreds, getting a head start, part of the battle for companies is the 1st 100 days after a deal.

So you've been in this game for a long time.

What do you think sets apart high performing firms from the others?

Out there, yeah, so I'll put 3 things out there.

One is how do you operate at scale.

So when you actually go in the public markets, you are raising a significant amount of money, a great branding event, right?

And it's also sort of there's expectations with the street of I'm going to hit quarters in years.

So I think that's the first piece.

There's a new discipline, but there's also an expectation that you're going to now hit revenue and hit earnings.

That's probably number one.

I think the second is now you also have to have a more rigor operating as a public company.

We see that as a great thing for a lot of companies.

You get a lot tighter about your messaging, you know, you make sure that you're much more efficient with your spend, but you also make sure that your relationship with your customers continues long.

Thereafter, I think the third thing is when you have a public company too you can attract great talent.

A lot of people want to be a part of something special.

I think it's something innate in the human spirit, and when you're with a company that you know is making a difference but also doing something unique, that's something that's very compelling.

And also while we're talking about the public markets and IPO expected today, we might actually even hear the first trade bell behind us shortly.

But in terms of expectations heading into 2025, there are quite a contrast when we're looking at the reality.

So give us an understanding of what we're seeing in the IPO market.

Yeah, so I think a lot of it is, you know, at Conner Group we have 106 clients that we have identified looking to go public in 205 and 26.

That was at the beginning of the year.

So there was quite a big of a backlog.

Now there has been a bit of what I call a chill in the market, right?

There's a feeling of just not certainty, institutional investors, but what is the path going forward and evaluations?

The analogy I like to make is companies are in the toaster oven.

They're warming up, right?

It takes 6 to 12 months to really get ready to go public.

Most of our clients aren't changing their.

Plans at all.

They're like, hey, when the window opens, let's be ready.

I actually think that's really the most critical message.

Do the readiness work so when the opportunity is there, you can really strike upon it.

Most proactive and leadership companies are doing that.

Well, I really like that analogy of the toaster there to what we're seeing in the IPO market.

But when we take a look at Companies and evaluations, it's easier to be critical once you take a step back.

So when it comes to scaling and scaling smart, what really needs to happen here?

Yeah, so in terms of evaluation, scaling evaluation, so I would say for those type of companies this is a long term game.

It's a marathon.

It's not sort of the destination.

So what we see in a lot of companies is your IPL evaluation often isn't the most critical piece of it.

It's nice to sort of make sure you can grow and expand, right?

The whole adage of beat estimates, right, meet and beat estimates and raise is really an important one.

So I think for companies having that longer term view is critical to scale their business because you want it where investors have long term relationships with you and they also believe in the long term story.

And finally Jim, before I let you go for viewers out there who are retail investors and they're watching all of this and saying what does this mean for investing for retail investors, not just in the short term but long term?

What is your perspective?

Yeah, so I'll put a couple of thoughts out there.

One is I really am bullish on long term value.

In US markets, and I think as an investor that long term piece, not the swings, not the cycles, but to know this is sort of something that you not only participate in, but you let it kind of accumulate and grow, right?

The whole compounding effect of investing is critical for retail investors, not sort of being in and out.

Time in the market is essential.

I think the second piece for a lot of investors too is there's a lot of opportunities coming up.

Not only is it sort of in specific industries that are strong, but you also see now private equity.

There's going to be a lot of products that are coming out to retail investors, right?

You see it at BlackRock, you see it at Goldman, JPMorgan, Fidelity, and Vanguard.

They're going to be.

Bringing these products into the private markets, 50% of the wealth in the world is with private individuals.

That's the next frontier.

I think there's going to be a lot of traction on that in the market.

I'm sorry, in the press coming up in the next couple quarters.

OK, Jim, well, it was great talking to you.

Thank you so much for joining me here at the New York Stock Exchange.

Thank you, Remy.

It was a pleasure.

I appreciate it.