Good morning, Hubsters. MK Flynn here in New York with the US edition of the Wire. As the first half of the year draws to a close, today we’re looking at some of the themes that defined dealmaking in the first half of the year. Two related themes stand out: the growing appeal of investing in European companies; and the impact of tariff uncertainty on dealmaking. In a story published this morning, our colleagues at Private Equity International spoke at length with Blackstone’s Steve Schwarzman and Jon Gray about the opportunities in Europe. We’ll open the Wire with that story. Prospect for change Investors are seeking more diversification in a post-Liberation Day world – and Europe in particular is set to benefit, according to the two most powerful executives at Blackstone. Speaking with Private Equity International’s Adam Le and Helen de Beer in London during the week of the firm’s 25th anniversary in Europe, chief executive Steve Schwarzman and president and chief operating officer Jon Gray said the tariff situation in the US had put Europe in a unique position to capture more investment from those looking to diversify away from uncertain markets. The duo’s comments came shortly after Blackstone’s global co-chief investment officer and head of Europe Lionel Assant told PEI: “The time to do interesting deals may be now… Europe has some attractions unequivocally. It’s also a more fragmented market, which means [as a firm] you can be nimbler.” Blackstone set up its European headquarters in London in 2000, two years after its landmark Savoy Group deal in 1998. Today, the firm has around 130,000 portfolio company employees in the region. Blackstone itself has about 800 employees in EMEA, of which around 650 are in the UK. Upgrade to the premium version of the Wire to read the interview with Steve Schwarzman and Jon Gray. PE Hub’s Europe editor Craig McGlashan has reported on the rise of interest in Europe extensively. US private equity’s European love affair is blossoming to such an extent that even GPs without a physical presence on the continent are trying to woo businesses, Craig wrote recently. Thoma Bravo founder and managing partner Orlando Bravo is “fired up about Europe” and expects the region to be its “fastest growing area over the next five years, Craig reported.” Tariff turmoil For many months, tariffs dominated much of the discussions about dealmaking. The up-and-down announcements spread uncertainty and slowed transactions. Across PEI Group, reporters and editors spoke with dozens of private equity thought leaders about how the situation was affecting the industry. PE Hub teamed up with Buyouts and Private Equity International on a special report, Tariff turmoil: What do PE professionals think? Upgrade to the premium version of the Wire to read the story. Subscribers to the premium version may also hear more perspectives on tariffs In a special podcast we recorded in which I discussed our findings with my colleagues Adam Le, senior editor, EMEA, private equity, PEI; Graham Bippart, senior editor, Buyouts and Private Funds CFO; and Madeleine Farman, editor, Secondaries Investor. We’re currently seeking commentary on the second half of the year. Will we see a resurgence in PE deals? Share your thoughts by emailing me at mk.flynn@pei.group Tomorrow, Craig will bring you the Europe Wire, and Obey Martin Manayiti will bring you the US edition. Cheers, MK Read the full Wire commentary on PE Hub ... | 