The Effects of Economic Uncertainty on Deal Making and Exit Plans

Our 2026 Asset Management Survey Report gathers the responses and insights from 300 asset management leaders across the United States for what is top of mind in the industry, including deal making and exit plans. Respondents report that the shifting tides surrounding the economy, politics, tariffs, interest rates, and other factors have taken a toll on deal making pace and exit plans. Four in ten have paused future deal making activity or all deal making activity. The opportunistic, and perhaps the better funded, are pressing on with deal making.

Deal Making Pace

Respondents report that the shifting tides and volatility surrounding the economy, politics, tariffs, interest rates, and other factors has taken a toll on deal making pace and exit plans. We see this in the data from our research as funds seek suitable buyers or valuations for assets. Nearly 4 in 10 (or 39%) have paused future deal making activity or all deal making activity. This leaves a large and perhaps opportunistic percentage (approximately 61%) who report no impact (33%) on deal making or increased activity (29%).

Exit Plans and Delay Causes

Almost two-thirds (62%) of survey respondents say they are not experiencing delays in exit plans. However, nearly 4 in 10 are faced with delays.

The top reported causes of delays in exits are economic uncertainty (69%), frozen mergers and acquisitions (M&A) market (65%) and limited initial public offering (IPO) opportunities (62%). It remains to be seen whether recent upticks in broader financial markets equate to exit planning clarity.

On the sell-side, management teams are gearing up for exits and going through the full quality of earnings (QoE) processes in hopes that the market window reopens soon. Deals may be hitting a pause when valuation expectations don’t quite match today’s more cautious underwriting.

On the buy-side, diligence is still uncovering strong fundamentals in businesses, yet sponsors are hesitant to move forward given the ups and downs in capital markets and uncertainty around financing.

While exits aren’t off the table, some have been pushed back until there’s better alignment between market sentiment and company performance. Exit readiness needs to go beyond strong financials – it’s about staying flexible and having a strategy that can adapt when the market shifts. The companies that come out ahead are the ones using this downtime to refine their story, so when the window opens, they’re ready to go.

Adjusting to Uncertainty

The top strategic responses to exit delays as reported by survey respondents include the use of secondary funds (66%), tokenization (56%), and continuation vehicles (53%). Over half (56%) say that tokenization is being used in lieu of traditional exits, which is a surprise finding in our data. Tokenization is an emerging exit strategy that could fundamentally transform how asset managers operate, bringing both advantages and disadvantages that could reshape the industry.

Pros:

• Enhanced liquidity for illiquid assets
• Increased accessibility and fractional ownership
• Operational efficiency and reduced costs
• Greater transparency
• Global reach

Cons:

• Regulatory uncertainty and legal complexity
• Market adoption
• Technological and security risk
• Valuation challenges
• Integration challenges

Sources of Deal Flow

Beyond the strong networks of investment professionals and active sourcing through industry events or conferences, the role of advisors remains critical to deal flow. Bankers (74%), accountants (73%), and lawyers (53%) are named the best sources of deal flow by our survey respondents, followed by other asset management firms (18%). These professionals are critical to deal flow as they act as advisors, uniquely positioned to be at the center of business transactions with a deep understanding of companies and their owners. They connect businesses in need of capital or strategic transitions with asset managers who can provide funding and support.