Private equity groups are selling portfolio companies to funds they also manage at a record pace, as weak exit valuations curb IPOs and trade sales. The rise of continuation vehicles brings extra fees for managers and liquidity for investors, but heightens conflict-of-interest concerns.

Global shares outpaced Wall Street as investors diversified amid unease over Trump’s policies, stretched US valuations and concerns about big tech and AI competition from China. Asset managers are shifting regional allocations after a prolonged period of US outperformance.

Tech start-ups have built a record $150bn cash pile to weather a potential AI downturn, prioritising ‘fortress’ balance sheets as funding cools and public market jitters grow. Backers urge discipline on burn, compute costs and revenue, warning valuations may outpace real adoption.

Global dealmaking hit about $4.5tn, the second-highest year on record. Cheap finance, boardroom confidence and US tax and regulatory shifts fuelled megadeals, lifting investment bank fees. Activity was led by US buyers, with technology, healthcare and energy among key sectors.