Houlihan Lokey's Strategic Expansion in EMEA Financial Sponsors Coverage: A Catalyst for Enhanced Private Equity Advisory Leadership

In the evolving landscape of alternative capital markets, top-tier M&A advisory firms are increasingly leveraging regional expertise and global networks to dominate sectors like private equity and financial services. Houlihan Lokey’s recent strategic expansion in EMEA financial sponsors coverage exemplifies this trend, positioning the firm to strengthen its leadership in private equity advisory. By hiring seasoned professionals such as Sandro Galfetti and Martin Rezaie, Houlihan Lokey is not only deepening its local market knowledge but also aligning with broader industry shifts toward GP-led transactions and sponsor-driven liquidity solutions.

Strategic Hires and EMEA Expansion

Houlihan Lokey’s Capital Solutions Group has made a pivotal move by appointing Sandro Galfetti, a former UBS executive, as a Managing Director in Zurich. Galfetti’s expertise in secondary advisory services and GP-led transactions, including continuation vehicles, directly addresses the growing demand for tailored liquidity solutions in the EMEA region [1]. This hire follows the firm’s earlier recruitment of Martin Rezaie, who rejoined to lead financial sponsors coverage in the DACH region, leveraging his deep middle-market transaction experience [2]. Together, these appointments underscore Houlihan Lokey’s commitment to capitalizing on the $23 billion in transactions it advised in 2024, a figure that reflects the firm’s expanding role in the secondary market [1].

The firm’s strategy mirrors broader industry trends. For instance, Goldman Sachs has bolstered its alternative capital capabilities by hiring specialists in insurance-linked securities (ILS) to enhance structuring expertise [3], while J.P. Morgan has leveraged its global network to advise on high-profile cross-border deals, such as American Axle & Manufacturing’s $1.44 billion acquisition of Dowlais Group [4]. Lazard, meanwhile, has focused on boardroom-sensitive M&A, as seen in its advisory role for BWGI’s Verallias tender offer [5]. These moves highlight how leading firms are adapting to the complexities of alternative capital markets by combining regional insights with global execution capabilities.

The EMEA Alternative Capital Market: A Competitive Battleground

The EMEA region has emerged as a critical arena for alternative capital, driven by megadeals, private credit expansion, and regulatory pressures. In 2025, global financial services deal values rose 15% year-on-year, with large transactions in payments and banking sectors dominating the landscape [6]. Houlihan Lokey’s focus on GP-led transactions aligns with this trend, as private equity firms increasingly seek innovative solutions to unlock value in a competitive environment. For example, the firm’s Capital Solutions Group has closed 15 GP-led transactions in 2024, demonstrating its ability to navigate the intricacies of sponsor-driven liquidity [1].

Comparatively, Goldman Sachs has emphasized diversification across private equity, real estate, and infrastructure, while J.P. Morgan has integrated advisory, capital markets, and financing services to dominate large transactions [7]. Lazard’s recent success in advising on €16 billion deals, such as CD&R’s acquisition of Sanofi’s consumer health unit, further illustrates the importance of regional expertise in executing complex cross-border transactions [5]. Houlihan Lokey’s niche focus on financial sponsors and sector-specific advisory services, however, differentiates it by offering tailored solutions in a market where digital transformation and consolidation are key drivers [8].

Global Networks and Sector-Specific Expertise

The ability to combine regional expertise with global networks is a hallmark of top-tier advisory firms. Houlihan Lokey’s 170-strong Capital Solutions team operates across eight countries, managing nearly 2,000 relationships with alternative investors [2]. This contrasts with Goldman Sachs’ broader, more generalized approach to large-scale transactions and J.P. Morgan’s emphasis on equity capital markets. For instance, Lazard’s Capital Markets Advisory group specializes in ESG integration and activism defense, tailoring strategies to clients’ unique needs [5]. Similarly, Houlihan Lokey’s emphasis on financial restructuring and sector-specific knowledge in EMEA allows it to address the unique challenges of European banks and technology firms, where consolidation and digital transformation are central to long-term success [8].

Market Projections and Competitive Dynamics

The M&A advisory market is projected to grow significantly, driven by private equity activity and corporate restructuring. Houlihan Lokey’s targeted approach in EMEA positions it to capture a larger share of this growth, particularly as firms like Goldman Sachs and J.P. Morgan face challenges from boutique players offering more personalized service [9]. For example, middle-market specialists have outpaced large banks in client satisfaction and completion rates in 2025, a trend Houlihan Lokey’s regional focus may capitalize on [9].

Conclusion

Houlihan Lokey’s strategic expansion in EMEA financial sponsors coverage is a calculated move to enhance its private equity advisory leadership. By hiring experts like Galfetti and Rezaie, the firm is not only addressing the immediate demand for GP-led transactions but also aligning with broader industry trends toward regional specialization and global execution. While competitors like Goldman Sachs and J.P. Morgan dominate large-scale transactions, Houlihan Lokey’s niche focus on financial sponsors and sector-specific expertise positions it to thrive in a market increasingly defined by complexity and consolidation. As the alternative capital landscape evolves, firms that balance local insights with global networks—like Houlihan Lokey—are likely to emerge as key players.

Source:
[1] Houlihan Lokey Strengthens Capital Solutions Group With Senior Hire in Europe, [https://kdow.biz/business/houlihan-lokey-strengthens-capital-solutions-group-with-senior-hire-in-europe/f9a2b42aa7db42b5a1a972e89defe0d3]
[2] Houlihan Lokey Further Expands EMEA Financial Sponsors Coverage With Senior Hire, [https://www.businesswire.com/news/home/20250905953204/en/Houlihan-Lokey-Further-Expands-EMEA-Financial-Sponsors-Coverage-With-Senior-Hire]
[3] Best of Artemis, week ending September 7th 2025, [https://www.artemis.bm/news/best-of-artemis-week-ending-september-7th-2025/]
[4] 2025 Top Global M&A Deals, [https://imaa-institute.org/blog/2025-top-global-m-and-a-deals/]
[5] Lazard Reports First-Quarter 2025 Results, [https://www.businesswire.com/news/home/20250425036253/en/Lazard-Reports-First-Quarter-2025-Results]
[6] Global M&A trends in financial services: 2025 mid-year, [https://www.pwc.com/gx/en/services/deals/trends/financial-services.html]
[7] The Largest Investment Banks in 2025: How Global Giants Are Reshaping M&A, Capital Markets, and Private Equity Advisory, [https://dealert.ai/blog/p/the-largest-investment-banks-in-2025-how-global-giants-are-reshaping-ma-capital-markets-and-private-equity-advisory/]
[8] European bank M&A pipeline stacked as rates, scale, tech drive deal flow, [https://ionanalytics.com/insights/mergermarket/european-bank-ma-pipeline-stacked-as-rates-scale-tech-drive-deal-flow/]
[9] Best M&A Advisory Firms: Elite Choices Revealed, [https://windsordrake.com/best-ma-advisory-firms/]