Bridge Bank CEO Bob Curley Talks M&A in 2026

Summary

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Bloomberg Talks – Bridge Bank CEO Bob Curley Talks M&A in 2026

Date: January 2, 2026
Host: Bloomberg
Featured Guest: Bob Curley, Deputy Chief Banking Officer, Regional Banking, Western Alliance

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Episode Overview

This episode unpacks the resurgent global M&A landscape and fresh capital dynamics as the calendar turns to 2026. The hosts interview Bob Curley, an executive at Western Alliance, to get his take on how 2025 unfolded for dealmaking, the changing profile of venture funding, and the sector trends driving innovation and exits in the year ahead. Curley particularly discusses the role of AI as a pervasive theme, the evolving function of venture debt, and the nuances investors and founders must now consider in a market flush with options.

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Key Discussion Points & Insights

1. 2025: A Banner Year for Dealmaking

• 2025 closed with a near-record $3.6 trillion in global M&A volume.
  Curley affirms that the second half of 2025 exceeded expectations for Western Alliance and innovation banking overall.
  Quote:

  “When I talked to you guys in June, I was optimistic that we would see a good second half and my expectations were exceeded, in fact ... We've had a very strong finish to the year and it looks like a good build to the book for next year.”
  — Bob Curley (01:36)

• Renewed liquidity in the market:
  The reopening of both the IPO and M&A markets has returned optimism to backers, encouraging new bets by investors.
  Quote:

  “Part of it was the reopening of the IPO market ... there's additional sources of liquidity in the market that we had not seen. That gets people who are funders of these businesses more optimistic ... willing to make bets today.”
  — Bob Curley (02:05)

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2. Funding Modalities: Equity vs. Venture Debt

• Equity investment is taking the lead, but venture debt is key for runway extension:
  While both private and public equity remain primary, venture debt gives early-stage companies time to hit milestones with less dilution.
  Quote:

  “It's always led by the equity side ... But what the function of venture debt is to be able to extend early stage companies, run cash runways ... so they can accomplish milestones ... and you can imagine what the valuation leap is when they are able to do that.”
  — Bob Curley (03:06)

• Equity attachment in venture debt:
  Even with debt, lenders often take warrants or small equity stakes, especially with younger companies. Notable Clarification:

  “They give up far less equity.”
  — Bob Curley (03:34) “If it's venture debt, they do give ... a little bit, depending on the situation, the early stages, they'll provide warrant coverage ... much less dilutive.”
  — Bob Curley (03:40)

• Later-stage companies might get pure debt:

  “That tends to be for later stage companies, growth type companies. So there's a continuum ... As the company progresses ... there’ll be less equity, more debt focus.”
  — Bob Curley (04:00)

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3. Sector & Deal Flow Trends: Is Everything AI?

• AI is omnipresent—but often superficially:
  Nearly every deal presents itself as AI-linked, sometimes in name only. Curley urges discerning investors to examine the depth of AI integration. Quote:

  “AI is a backbone or AI is now being attached to everything that comes across anyone's desk ... everyone's putting the AI tag on everything.”
  — Bob Curley (04:28)

• Diverse Industry Action:

  • Medical & Life Sciences: Accelerating integration of AI.
  • Energy: "Clean tech" is evolving into "energy tech," focused on broader, cost-effective energy sources. Quote:

  “On our ... medical and life sciences groups, we're seeing ... much accelerating in that area. We're also seeing energy. What had been clean tech is now becoming energy tech.”
  — Bob Curley (04:28)
  “It's really a transition in terms of AI. What it's doing is transitioning ... the software business into an AI business, but it's really going after the applications business. So how do we solve a specific company's problem today? What's the ROI on that? And that's where we're seeing applied AI really make some gains.”
  — Bob Curley (05:12)

• Skepticism about the “AI tag” reminiscent of the dot-com bubble:
  Host makes a parallel to the early 2000s, questioning the validity of “AI” claims. Quote:

  “[That] makes me a little nervous because that reminds me of the .com where every three Betty threw.com on, you know, and so they had an Internet strategy and everybody didn’t.”
  — Host (05:48)

  • Curley’s reply: Scrutiny is essential; lasting competitive differentiation and measurable ROI matter most.

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4. Rigorous Focus on Value and Differentiation

• Curley’s investment filter:

  “Everything has a consistent backbone or consistent theme of AI. And what you have to look at is what is the comparative differential that they provide and how long-lasting is that ... [We focus] on those sectors where there’s a more immediate ROI for the ultimate enterprise client.”
  — Bob Curley (06:10)

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Notable Quotes & Memorable Moments

• On second-half resurgence:
  “My expectations were exceeded … [2025 ended] with a very strong finish to the year and it looks like a good build to the book for next year.”
  — Bob Curley (01:36)

• On funding innovation:
  “The spigot has now turned back on … even more are teed up to tap the market as we go into the new year.”
  — Bob Curley (02:05)

• On the AI tag:
  “AI is now being attached to everything … you have to dig in and understand what the level of AI is. In many cases it’s machine learning or just plain automation.”
  — Bob Curley (04:28)

• On the real differentiator:
  “What is the comparative differential they provide and how long-lasting is that.”
  — Bob Curley (06:10)

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Timestamps by Topic

• 01:05 – Summary of 2025’s M&A surge and sector sentiment
• 01:36 – Bob Curley reviews 2025’s performance and optimism for 2026
• 02:05 – Liquidity opens up: IPOs and M&A drive funder optimism
• 03:06 – Equity vs. venture debt, and their roles for startups
• 04:00 – How equity and debt mix changes with company stage
• 04:17 – Sectors seeing strong deal activity: AI, med/life sciences, “energy tech”
• 04:28 – The hype vs. substance of AI attachments in deals
• 05:12 – Transitioning from software to AI via applications with clear ROI
• 05:48 – Concerns about the overuse of the “AI” label, parallels to dot-com era
• 06:10 – Curley’s focus on sustainable differentiation and ROI

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Tone & Style

The conversation is upbeat yet analytical, marked by practical wisdom and some skepticism about market buzzwords. Curley brings an experienced, measured perspective, emphasizing evidence, discernment, and the need for real business value beneath technological claims.

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For M&A watchers, startup founders, and anyone tracking the pulse of innovation in 2026, this episode offers both optimism and a call to diligence.

Transcript

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[A]

All right, 2025 marking a big year for dealmaking with a second half surge catapulting global M and A to a near record volume of $3.6 trillion. And our next guest says an increasing number of exits are expected through 2026, starting with IPOs, but quickly expanding to a more vibrant M and A market. Let's get to it with Bob Curley. He's Deputy Chief Banking Officer of Regional Banking at Western alliance, joining us right now. Hey, Bob, good to have you here. 2025, how did that end up for you?

[C]

Thank you. Happy New Year to you and Tim, the year was fantastic. When I talked to you guys in June, I was optimistic that we would see a good second half and my expectations were exceeded, in fact, both for the bank overall and for innovation banking in particular. We've had a very strong finish to the year and it looks like a good build to the book for next year.

[A]

Well, tell us a bit more about that. Give us some color or give us some insight into exactly what you're seeing and what kind of deals are we talking about?

[C]

Well, we're talking across the whole scale, which is a little bit different. What we had not seen before was earlier stage companies in the innovation sector going out and successfully Raising money. The spigot has now turned back on. We started to see that late Q3 and in the Q4 we had any number of companies tap the market and even more are teed up to tap the market as we go into the new year. Part of it was the reopening of the IPO market. And by mention, as was just discussed on your show, the M and A market has really come back as well. So there's additional sources of liquidity in the market that we had not seen. That gets people who are funders of these businesses more optimistic as to what the future will be, what the exits will look like, and hence willing to make bets today.

[D]

A lot of ways to fund these businesses, there's equity investment, there's venture debt, which I know you certainly specialize in. Which one will take a front seat in 2026?

[C]

Well, it's always led by the equity side and that's both private and public equity. When we're talking about IPOs, that's public equity. But what the function of venture debt is to be able to extend early stage companies, run cash runways so that they can accomplish milestones or traction with clients to prove out that their solution does indeed work. And you can imagine what the valuation leap is when they are able to do that.

[D]

So they don't have to give up any equity to that.

[C]

They give up far less equity.

[D]

Way far less. Do they not give up any equity.

[B]

If it's venture debt, they do give.

[C]

A little bit, depending on the situation, the early stages, they'll provide warrant coverage on the transaction. That gives a little bit of upside to the, to the lender, but compared to equity, much less dilutive.

[D]

But are you ever doing deals in venture debt where you're just loaning money and you're, you're not actually getting an equity stake?

[C]

That tends to be for later stage companies, growth type companies. So there's a continuum. It starts with the very earliest stage. You do see equity attachments to almost all the deals. And as the company progresses through its development chain, there'll be less equity, more debt. Focus.

[A]

Hey Bob, what kind of companies though? Is it all AI related? Is it Bioscience, Biotechnology? Give me an idea of the kind of deals that are coming across your desk.

[C]

I would say AI is a backbone or AI is now being attached to everything that comes across anyone's desk. And so you have to dig in and understand what the level of AI is. In many cases it's machine learning or just plain automation. So everyone's putting the AI tag on Everything. But that is the constant backbone or the consistent backbone that we see is now being applied to a whole lot of businesses. For example, on our, in our medical and life sciences groups, we're seeing the, of a much more, much accelerating in that area. We're also seeing energy. What had been clean tech is now becoming energy tech.

[A]

What does that mean?

[C]

So it's just change, like what does that mean? No, I think it's a focus from just focusing on clean energy, for example, to how do we get more sources of energy at a more compelling price. And so it's really a transition in terms of AI. What it's doing is transitioning, transitioning the software, what had been the software business into an AI business, but it's really going after the applications business. So how do we solve a specific company's problem today? What's the ROI on that? And that's where we're seeing applied. I really make some gains, Bob.

[A]

I want to go back to something you said though about deals coming across the desk and you said everybody's attaching AI and you've really got to kind of go through stuff that makes me a little nervous because that reminds me of the.com where every three Betty threw.com on, you know, and so they had an Internet strategy and everybody didn't. So is there a lot of that coming through or no?

[C]

I would say everything has a consistent backbone or consistent theme of AI. And what you have to look at is what is the comparative differential that they provide and how long lasting is that the branch that differential going to last. And as a result, what we're doing is focusing on those sectors where there's a more immediate ROI for the ultimate enterprise client.

[D]

Bob Curley, Deputy Chief Banking Officer of Regional Banking at Western alliance, joining us on this first trading day of the year.

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