Middle Eastern and Asian countries' "national teams" are sweeping through the global acquisition market this year.

Sovereign wealth funds with strong capital are driving a strong recovery in the global mergers and acquisitions market, pushing the total value of M&A transactions this year to exceed $3.5 trillion. Background funds from countries in the Middle East and Asia have provided funding support for several large-scale transactions this year. On Tuesday, Blackstone (BX.US) and TPG Inc. (TGP.US) reached an agreement to acquire medical equipment manufacturer Hologic (HOLX.US) for up to $18.3 billion, including debt. Abu Dhabi Investment Authority and Singapore sovereign wealth fund GIC Pte acquired minority stakes in this deal. Last week, BlackRock, Inc. (BLK.US) teamed up with Abu Dhabi sovereign wealth fund Mubadala Investment Co.'s artificial intelligence investment arm MGX to acquire Aligned Data Centers for $40 billion. The week before that, Carlyle Group Inc (CG.US) and Qatar Investment Authority collaborated on the acquisition of a controlling stake in the coatings business of BASF Group (BASFY.US), valued at 7.7 billion euros (approximately $8.9 billion). In September, the Saudi sovereign fund, led by Crown Prince Mohammed bin Salman, agreed to privatize video game developer Electronic Arts Inc. (EA.US) in a leveraged buyout worth $55 billion, making it the largest leveraged buyout deal in history. Sovereign wealth funds are continuously expanding their internal trading teams in order to make more direct investments, enabling them to make profits without paying high fees to Wall Street. They are also one of the most important contributors to private equity funds and have successfully secured preferential terms, forcing acquisition companies to provide them with co-investment opportunities in exchange for their funding. These funds are particularly active in the technology sector. In August, private equity giant Thoma Bravo received funding from Abu Dhabi Investment Authority in its acquisition of human resources software provider Dayforce (DAY.US) valued at around $12 billion. Abu Dhabi's state-owned fund MGX, led by Sheikh Tahnoon bin Zayed Al Nahyan, invested in OpenAI with an estimated valuation of $50 billion. The fund also supports Musk's xAI and plans to invest in President Trump's "Stargate" venture. Singapore's government investment corporation and Qatar Investment Authority have also invested in competitor artificial intelligence startup Anthropic. Compiled data shows that global M&A transaction volume has increased by 34% so far this year, reaching $3.5 trillion, making 2025 likely to be the most active year for M&A activity since 2021. Thanks to several super deals, the transaction volume recorded in the third quarter has exceeded $1.3 trillion. Top investment bankers at leading investment banks expect this wave of acquisitions to continue. Goldman Sachs Group, Inc. predicts that M&A activity will accelerate significantly by the end of the year, with 2026 potentially becoming a record year for mergers and acquisitions. Sovereign investors are actively seeking more transaction opportunities. According to reports last week, Mubadala's asset management department is exploring the acquisition of billboard operator Clear Channel Outdoor (CCO.US), which has a market value of approximately $930 million. In addition to direct acquisitions, sovereign wealth funds are also expanding into other investment areas. The Qatar sovereign fund recently teamed up with investment institutions like Apollo Global Management Inc. (APO.US) and Ares Management Corp. to provide over $2 billion in financing for Hollywood super agent Ari Emanuel's new company.