Good morning, PE Hubsters! Rafael Canton here with the US edition of the Wire from the New York newsroom. First, let’s begin with a conversation about the uncertainty surrounding tariffs on goods from countries outside the US. The lack of clarity is already affecting deals in the consumer sector, according to sources interviewed by PE Hub. Next, we have a look at a recent HVAC deal. The Exigent Group, a portfolio company of Huron Capital Partners, and its operating company Smith-Boughan, have acquired Premier Mechanical. The deal follows up on the busy category of HVAC which has seen steady dealmaking. Finally, we have a look at a report from the Deloitte Center for Financial Services about how alternative exit strategies can lead to private equity dry powder reaching an all-time high of $3.8 trillion globally. Uncertainty kills deals After the inauguration this week, one of the central topics swirling around private equity is the new administration’s stance on tariffs. After his inauguration on Monday, President Donald Trump told reporters on Monday that he is considering putting 25 percent tariffs on goods from Mexico and Canada. China has been another country of focus. However, Trump has not signed any executive orders related to tariffs yet. I wrote about the potential impact of tariffs on dealmaking in the consumer sector and how dealmakers in the sector are reacting to it. PE Hub will be keeping an eye on the conversation around tariffs in the consumer sector. Subscribe to the premium version of the Wire to learn how dealmakers are seeing tariffs and how it can impact PE dealmaking. HVAC deals a plenty In a recent deal, The Exigent Group, a portfolio company of Huron Capital Partners, and its operating company Smith-Boughan, have acquired Premier Mechanical. PE Hub has been following the HVAC space for some time now. PE Hub reporter Obey Martin Manayiti analyzed about 80 residential and commercial HVAC deals that we covered between 2022 and 2024 in a November story. Premium subscribers to the Wire can learn more about the Huron deal and PE Hub’s story that highlights why HVAC is attractive to investors. Exit strategy PE firms can potentially unlock 20 percent annual growth in private equity dry powder through 2028, reaching $3.8 trillion globally according to a report from Deloitte Center for Financial Services. The figure would be an all-time high. Subscribe to the premium version of the Wire to look at the report as well as insights from Deloitte. That’s it from me today. If you have any questions, thoughts, or want to chat about tariffs or any other topic, please email me at rafael.c@pei.group. Tomorrow, Nina Lindholm will be with you for the Europe edition of the Wire and Michael Schoeck will bring you the US edition. Cheers, Rafael Read the full Wire commentary on PE Hub ... | 