Name: Morgan Stanley's Tom Miles: You've got very big interest in investing in the U.S.
Uploaded: 2026-01-26T17:31:56+00:00
Duration: 175 s

Speakers

Tom Miles — Global Co-Head of M&A, Morgan Stanley

Summary

Tom Miles, Morgan Stanley's global co-head of M&A, says private equity is still deploying capital despite a tougher fundraising backdrop and that sponsor activity is broadening through take-privates, corporate carve-outs, and sponsor-to-sponsor deals. He also sees resilient cross-border M&A, with the U.S. the dominant target nation as tariffs and supply-chain shifts create urgency to own U.S. assets. Geopolitical tensions and EU approval risk are present but are not stopping companies from pursuing defined global strategies.

Private equity has about $4 trillion of dry powder, down from almost $5 trillion.
Sponsors did nearly 100 global take-privates last year and are seeking valuation disconnects in smaller public companies.
Corporate carve-outs and sponsor-to-sponsor M&A are expected to increase.
55% of PE portfolio companies are more than five years old, pressuring sponsors to monetize.
Cross-region M&A rose 40% last year despite geopolitical tensions.
The U.S. is the biggest cross-border target nation, roughly three times the next country.
Tariffs and supply-chain shifts are driving urgency to hold U.S. assets.
Companies' defined global growth strategies may outweigh government and EU approval concerns.

Ideas

Tom Miles Global Co-Head of M&A, Morgan Stanley 0:25

Private equity deal activity is rebounding.

Private equity has about $4 trillion of dry powder, down from almost $5 trillion due to tougher fundraising, but sponsors continue deploying capital. They did almost 100 global take-privates last year, are expected to keep buying corporate carve-outs, and the sponsor-to-sponsor market is starting to come back as 55% of portfolio companies are more than five years old. Monetization should eventually improve fundraising.

Tom Miles Global Co-Head of M&A, Morgan Stanley 0:49

PE hunts undervalued smaller public companies.

Private equity sponsors are actively seeking valuation disconnects in smaller public companies, evidenced by nearly 100 global take-privates of public companies last year. This creates an M&A target setup for smaller public companies.

Tom Miles Global Co-Head of M&A, Morgan Stanley 2:05

Global capital favors U.S. assets.

Cross-region M&A rose 40% last year and geopolitical tensions have not prevented deals. The U.S. is the biggest target nation by a mile, roughly three times the next country, because global supply chains and tariffs create urgency for companies to have assets in the U.S. This supports very big interest in investing in the U.S.

This CNBC video, published January 26, 2026, features Tom Miles discussing PSP, Smaller public companies, United States (economy). 3 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Tom Miles · Tickers: PSP, Smaller public companies, United States (economy)

Morgan Stanley's Tom Miles: You've got very big interest in investing in the U.S.

Summary

Ideas

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