March 15, 2019

M&A Activity Boosts Capital Inflow to the U.S.

Attractive pricing relative to value and motivation to efficiently deploy large amounts of capital contributed to a huge year for M&A activity, particularly in the retail sector. Including assets acquired through entity-level deals, inbound capital to the U.S. in 2018 was up by 79% from 2017. Cross-border investment volume of individual assets and portfolios (excluding entity-level) decreased moderately.

U.S. outflows increased by 24% last year, as investors sought new opportunities for yield. Significantly more capital was deployed to Europe (up 31% from 2017), where a favorable forward exchange rate between the dollar and the euro provides U.S. investors an opportunity to lock in additional returns by purchasing forward contracts to hedge against currency risk.

Download the PDF for a comprehensive infographic of the data and how it ties together or explore the data in segments by clicking on the topics below.