On the latest episode of Behind the Buyouts, John Ferrara, founder and president of middle market investment bank Capstone Partners LLC, discussed the firm’s growth over the past 20 years, its merger with Huntington Bancshares Inc. (HBAN) and expectations for dealmaking in 2025.

Following its launch in 2002, Capstone received two rounds of growth financing and made nine strategic transactions, including its 2022 sale to Huntington. Ferrara initially wanted to partner with a private equity firm to go after larger acquisitions and double the company’s size in about five years. But after meeting the bank through a connection, he felt Huntington’s purpose-driven, growth-oriented culture and need for investment banking capabilities were a better fit.

“The weight they were putting on the importance of investment banking in their total client solution was really attractive to me,” Ferrara said. “And of course, they brought a balance sheet which could accelerate our ability to do acquisitions [and] infrastructure in risk management, compliance, cybersecurity.”

Ferrara also said he anticipates a return to stronger M&A in 2025 now that the markets have more clarity post-election. Lower interest rates, aging business owners, limited partners waiting on returns and a down cycle that’s lasted longer than usual also are poised to fuel greater dealmaking.

“The private business owner that has postponed [a sale] for four or five years, waiting for the markets to get better and the M&A environment to be more favorable, is now older, and their goals are more pressing,” Ferrara said.

Check out the podcast with John Ferrara below:

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