Key facts
- Alex Gerko earned a record £895 million from his trading firm XTX Markets.
- XTX Markets experienced a volatile year.
- Global M&A volumes have climbed to nearly $3.1 trillion in the first nine months of the year.
- The third quarter saw a significant increase in dealmaking, with 14 transactions exceeding $10 billion announced globally.
Alex Gerko earned a record £895 million from his trading firm XTX Markets, which navigated a volatile year. This personal financial success coincides with a broader resurgence in global mergers and acquisitions.
Globally, M&A volumes have surged, reaching nearly $3.1 trillion in the first nine months of the year, a 35% increase compared to the same period in 2024. The third quarter was particularly active, with dealmakers completing nearly $1 trillion in transactions. This period saw an unusually high number of large deals, with 14 transactions valued above $10 billion announced globally during the summer months alone. In total, 47 deals exceeding $10 billion have been completed this year, marking a record.
The increase in M&A activity is attributed to a release of pent-up demand, as companies revisit plans shelved during periods of interest rate hikes and valuation volatility. The current stability in financing markets, despite higher costs, has encouraged deal-making. A "contagion effect" from headline deals also appears to be emboldening competitors, creating a sense that inaction carries greater risk. Private equity sponsors are also motivated by substantial available capital and looming fund life constraints.
Advisory fees for banks and boutiques have also risen significantly, with nearly $100 billion generated through September. The current market environment is characterized by a "conviction-driven M&A" approach, signaling a shift towards bolder transactions after years of hesitation.