Katie Klosterman, UBS: 2026 Australian M&A Trends & Dealmaking

March 16 2026 | Mergers and acquisitions | Deals

Key M&A Trends and Private Credit Focus for 2026

Key Takeaways: 2026 M&A Trends & Leadership

Strategic Offshore Expansion: High-quality Australian companies are increasingly supported in pursuing international growth through capital markets and M&A, provided the expansion is driven by "strategic honesty" rather than just meeting consensus expectations.
The Return of 'Risk-On' Dealmaking: Driven by stabilizing markets and renewed 'animal spirits,' M&A activity is seeing a resurgence with dealmakers actively putting forward offers and executing asset sales.
2026 Sector Trends to Watch: Expect continued momentum in public-to-private transactions and private credit-driven activity, which will serve as a significant boon to the financial services sector.
Transparent Deal Leadership: Efficient deal execution requires checking egos and embracing a "clear is kind" philosophy. Direct, honest communication reduces game-playing and ultimately drives the best outcomes for clients.
The Power of Diverse Advisory: Navigating complex, cross-border transactions—from Chicago to Sydney—highlights the distinct advantages that women bring to the advisory table, particularly in advanced rapport-building and reading the room.

“I think it’s good to see companies taking a bit of risk where it makes sense and where they genuinely believe it’s the right thing for their business versus trying to meet some consensus growth expectations. That’s what I mean by that strategically honest pursuit of offshore growth.” Katie Klosterman, Co-Head of the Financial Institutions Group (FIG) at UBS Australasia, fully appreciates the issues facing successful Australian businesses that inevitably come against the issue of a limited market size.

Particularly for public traded or private equity owned companies… there’s always the question of ‘why don’t we go international?’... and sometimes [they] have the wrong incentives.” But where there are high quality Australian companies with excellent IP and logical markets to head into, Katie believes in getting right behind them: “We should support those offshore expansion initiatives through the capital markets or through M&A.”

The return of ‘risk on’ mentality

Katie’s take on the current state of the Australasian market is that “M&A activity seems to be quite ‘risk-on’ at the moment. People are actually doing deals, putting forward offers, pulling the triggers on selling assets.” While she’s of the opinion that none of the underlying macroeconomic or geopolitical factors have significantly changed, she notes that “equity markets have been broadly supportive.” In her view, what is the reason behind this return of the ‘risk’on’ mentality? Katie puts it down to two primary factors: “I think it’s partly ‘animal spirits’ and partly comfort that things have been ‘consistently unstable’ for long enough that people feel comfortable taking some riskier decisions.”

Key areas of focus for 2026

Katie and her team at UBS have their sights on a number of trends looking at 2026 and beyond. She believes there will be continued activity in public-to-private deals where, she says “we saw some large deals at the back end of last year.” She says that trend will be a boon to financial services where, she notes, “activity has been lighter the last few years.” She also predicts continued private credit-driven activity, particularly as the asset management space evolves, while noting that ‘traditional active equity management is a lot harder now with the rise of passive and increasingly with the rise of AI capabilities.” On the domestic front, one area that she believes is still uncertain is the future of wealth management and financial advice. As she says, “post-royal commission, all the banks exited and left a massive hole” in the industry. Katie is honest in her view, saying, “That’s probably the driver that’s at its earliest stage in my mind.” But she knows for sure that “it’s not going away.”

A tale of three cities

Chicago. London. Sydney. Katie’s career has taken her on a global trajectory that gives her a unique comparative lens on the industry. In her native USA, she studied financial engineering at Princeton University, where she was attracted to the “blend of math, computer science, complex concepts and applications of those mathematical concepts.” That was her funnel into investment banking where she landed a role at UBS in Chicago. In a career that now spans 17 years, Katie has invaluable insights on the three key markets she has worked in. In the massive US market, you can, she says, “do very well only focusing on the domestic US”. Moving to London in 2011 to work on pan- European deals forced a shift in her approach, requiring a mastery of “soft skills” to navigate different cultures and jurisdictions.

“People in Europe tend to be less direct than in the US, particularly in the UK.” Since arriving in Australia in 2016, she has found the local market to be a fascinating “mesh of the two.” While a smaller place to do business, the Australian market is fiercely competitive. “I’m constantly challenging myself to bring new ideas to clients to bring interesting angles... and demonstrate capabilities and value on an ongoing basis”.

Navigating the deal as a woman

Katie’s transnational career also stands her in good stead as a female leader in a traditionally male-dominated industry. To reach her current role, she has developed a pragmatic and resilient approach, believing that women bring unique strengths to the advisory table. Chief among these is the ability to check one’s ego. “It’s more common for men to let their ego get in the way,” she observes. “You get much better outcomes when you don’t let that happen... you can just get things done more efficiently because people get used to communicating very clearly, very openly”. She also highlights the necessity of developing advanced rapport-building skills. Without the “immediate common ground” that might exist between men in the industry, she has had to work harder to connect with diverse personality types. “I’ve approached it probably in a much more studious way because I’ve had to... and it helps me in a deal making context. It helps me read the room”.

Clear is kind

Clarity is very much an attribute at the forefront of Katie’s attitude to work and leadership. She says her leadership style is built on vulnerability and directness, striving to be “firm but not scary,” creating an environment where team members feel safe delivering bad news early. Her mantra for feedback is simple: “Clear is kind.” She emphasises the importance of timely, honest conversations over conflict avoidance. “In that moment, whoever you’re delivering the feedback to, they’re not going to like you... but that’s how you get better over time and forge stronger relationships.” Looking to the future of the industry, Katie expresses a desire for enhanced transparency in dealmaking to reduce inefficiency and “game-playing,” arguing that putting cards on the table usually leads to the best outcomes. Whether it’s in business dealings or team leadership, at the heart of Katie Klosterman’s is her unwavering belief in strategic honesty.