Goldman Sachs CEO David Solomon anticipates a surge in equities, mergers, and acquisitions dealmaking, predicting activity levels will surpass the 10-year average in 2025. Speaking at the Reuters NEXT conference in New York, Solomon shared his optimistic outlook for the industry.
“I think in 2025 we will certainly be at 10-year averages. We might even be ahead of 10-year average,” Solomon said.
His comments come amid growing confidence among bankers following Donald Trump’s U.S. presidential election victory. Many foresee a pro-growth agenda, with regulators expected to ease what some consider burdensome restrictions. However, Solomon cautioned it remains too early to fully assess the incoming administration’s policies.
“I am quite optimistic that this administration is going to run a very, very pro-growth agenda,” Solomon added. “The first 100 days, obviously, will give us some indication about the balance of whether it’s trade policies, immigration policies, energy policies, tax policies – how the combination of those things will come together.”
Investment Banking Rebound
Goldman Sachs has solidified its position at the forefront of global mergers and acquisitions. Over the past year, a rebound in investment banking has reinforced its leadership. Among the year’s major deals, Goldman advised Kellanova, the maker of Cheez-It, on its $36 billion sale to candy giant Mars.
“The first 100 days, obviously, will give us some indication about the balance of whether it’s trade policies, immigration policies, energy policies, tax policies – how the combination of those things will come together.”
Goldman Sachs CEO David Solomon
Chief Financial Officer Denis Coleman echoed Solomon’s sentiments, noting that strategic deals by companies are expected to accelerate in 2025. “We expect large-scale mergers and acquisitions to pick up significantly,” Coleman said at Goldman’s financial services conference.
While private equity buyouts have been sluggish, bankers predict activity in this area will also increase next year.
A Shift in Focus
Goldman Sachs has been scaling back its consumer business, a division championed by Solomon that incurred significant losses. The firm has since refocused on its traditional strengths in investment banking and trading.
On the topic of cryptocurrencies, Solomon addressed the regulatory limitations currently preventing Goldman from trading digital assets. “At the moment, as a regulated banking institution, we’re not allowed to own a cryptocurrency like Bitcoin as a principal,” Solomon said. “We give our clients advice around a variety of these technologies and these issues and will continue to do that, but for the moment our ability to act in these markets is extremely limited from a regulatory perspective.”
Looking Ahead
Solomon, who became CEO in 2018, remains committed to leading the firm for as long as the board sees fit. “I’ve got a great job, and I’ll be the CEO as long as the board wants me to be the CEO,” he said.
Goldman Sachs’ renewed focus on its core business and its bullish outlook for 2025 signal a promising period for one of Wall Street’s most influential institutions.
