After a sluggish stretch in 2022 and 2023, mergers and acquisitions are roaring back to life in 2025.
Rising CEO confidence, stabilising interest rates, and pent-up strategic demand are fueling a new wave of dealmaking across sectors – from industrials to tech to healthcare.
Private equity companies are sitting on record dry powder, and corporates are increasingly looking to consolidate, divest, or expand into new verticals. Investment banks are staffing up, and advisory pipelines are swelling.
With the macro backdrop turning more favourable as well, 2025 could be a breakout year for M&A activity.
That said, here are two US stocks that stand out as prime vehicles for investors looking to ride the next wave of dealmaking momentum.
Moelis & Co (NYSE: MC) – a pure-play M&A engine
Moelis is one of the few publicly traded investment banks that offer direct exposure to advisory-driven M&A cycles without the baggage of trading desks or lending operations.
As David Bahnsen of Bahnsen Group recently noted, “It’s a pure services business with investment banking, mergers and acquisitions, and yet they have no debt.”
That clean balance sheet gives Moelis the flexibility to scale and reward shareholders even in volatile markets.
The firm has been aggressively hiring senior bankers, signalling confidence in a robust deal pipeline ahead.
Its fee-based model thrives when transaction volumes rise, and with global M&A rebounding, MC stock is well-positioned to capture advisory mandates across sectors.
Investors looking for a high-beta play on dealmaking – with minimal credit risk – should keep Moelis on their radar.
It’s lean, focused, and built for the kind of environment 2025 is shaping up to be.
While Wall Street currently has a consensus “hold” rating on Moelis stock, the price targets go as high as $90, indicating potential “upside” of more than 20% from here.
Plus, a rather healthy 3.6% dividend yield makes MC all the more attractive as a long-term holding.
KKR & Co Inc (NYSE: KKR) – private equity powerhouse
While Moelis thrives on advising deals, KKR is built to execute them.
As one of the world’s largest alternative asset managers, it has deep roots in private equity, infrastructure, and credit.
With over $500 billion in assets under management and access to global capital, KKR is a direct beneficiary of rising M&A activity – especially as corporates look to divest non-core assets and PE firms return to leveraged buyouts.
The ability to structure complex transactions, deploy capital across cycles, and monetise portfolio companies makes KKR stock a strategic winner in a deal-heavy environment.
Moreover, the firm’s expansion into insurance and real estate adds diversification and fee stability.
For investors seeking exposure to the engine room of M&A – not just the advisory layer – KKR shares offer scale, sophistication, and upside as the 2025 deal wave builds.
That’s part of the reason why Wall Street currently has a consensus “overweight” rating on KKR with a mean target of nearly $166, indicating potential “upside” of roughly 23% from here.
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