Last week, we attended the Private Equity Summit 2025, hosted by the M&A Community in the Netherlands. The event brought together leading investors, dealmakers, and strategic advisors to discuss the evolving dynamics of private equity amid economic shifts and regulatory changes.
While the summit primarily focused on traditional PE investments, many of the insights resonated deeply with the fintech M&A landscape. At PG Capital, we continuously analyze how macroeconomic shifts influence cross-border deals, license acquisitions, and strategic market entry in fintech.
The PE Summit highlighted how private equity firms are responding to rising interest rates and tighter credit conditions by exploring alternative financing structures. Seller financing, earn-outs, and hybrid models are increasingly prevalent as traditional bank lending becomes more selective.
For fintech M&A, these trends underscore the importance of financial agility. While traditional funding may become less accessible, strategic acquirers are leveraging structured finance solutions to balance risk and reward. This shift towards deal flexibility is crucial for fintech firms looking to expand in new markets, especially when acquiring licensed entities that require substantial initial investment.
Our takeaway:
As funding conditions tighten, structured and alternative financing will be key for fintech acquisitions, allowing firms to mitigate risks while accessing new markets through licensed entity acquisitions.
One of the most compelling insights from the summit was the geopolitical divergence in ESG priorities. Since Trump’s return to the White House, the US private equity landscape has seen a reduction in ESG focus, with many firms scaling back on sustainability commitments. In contrast, Europe remains steadfast in integrating ESG into investment strategies.
For fintech companies operating internationally, this divergence means that cross-border M&A requires a nuanced approach to ESG compliance and reporting. In Europe, ESG remains not only a regulatory expectation but a strategic lever for attracting investment. Meanwhile, US-based fintechs may face less pressure but risk falling behind in global markets that prioritize sustainability.
Our takeaway:
ESG will continue to shape fintech M&A in Europe for years to come, driven by regulatory frameworks and investor expectations. Strategic acquirers must embed ESG readiness into their due diligence, particularly when targeting European entities.
The summit emphasized how geopolitical and macroeconomic volatility are making cross-border transactions more complex. Currency risks, trade restrictions, and local compliance challenges are forcing private equity firms to rethink their international growth strategies.
In fintech M&A, acquiring licensed entities in regulated markets remains the most efficient way to achieve cross-border scalability. This approach bypasses the lengthy process of applying for new licenses while ensuring regulatory compliance from day one.
Our takeaway:
To remain agile in volatile markets, fintech acquirers should consider buying fully licensed entities rather than attempting to secure licenses independently. This strategy allows for faster market entry and mitigates regulatory risks.
A key theme at the summit was the rise of secondaries and continuation funds as tools for managing liquidity amid uncertain exit environments. This trend is increasingly relevant for fintech investors facing longer holding periods due to regulatory delays or market volatility.
In fintech M&A, continuation funds can help investors maintain strategic exposure to high-potential assets while managing liquidity. This is especially valuable for fintech firms navigating extended regulatory processes before achieving profitability.
Our takeaway:
We expect secondaries to become a more integral part of fintech growth strategies, offering a way to balance liquidity needs with long-term exposure to evolving markets.
The PE Summit 2025 reinforced the importance of strategic flexibility and cross-border readiness in today’s volatile economic landscape. For fintech companies, this means:
The discussions at the PE Summit 2025 underscored the need for a flexible, globally aware approach to M&A in fintech. As macroeconomic uncertainties continue and regulatory expectations diverge across markets, PG Capital remains committed to empowering fintech companies to scale confidently across borders.
We extend our gratitude to the M&A Community and the esteemed speakers for an engaging and thought-provoking event.
Our Role at PG Capital
At PG Capital, we advise fintech firms and investors on strategic M&A and regulatory-driven market entry. Our support includes:
As the fintech landscape evolves, cross-border scalability and regulatory readiness are key drivers of value. PG Capital's expertise ensures that fintech firms not only enter new markets efficiently but thrive within them.
For more information or to discuss your specific opportunity, reach out to our team directly.
Simon Stokes and or David Nuñez.
.png)
