Daily Insurance Industry News
 
 
Daily Insurance Industry News
Monday 23rd of April 2018
June 29, 2011

Financial services consolidation tempts private equity managers

by Gill Montia

Story link: Financial services consolidation tempts private equity managers

New research from Grant Thornton suggests that most private equity managers are considering acquiring a financial services business in 2011, with nine out of ten respondents expecting deal volumes in the sector to increase in the short to medium term.

The majority of those questioned also predicted that valuations will rise.

In a report entitled “Where is the smart money going in Financial Services?”, the accountancy firm points out that despite uncertainties over regulation, the sector is too big and too rewarding to be ruled out by private equity firms.

Furthermore, recent events have taken out a number of major players but left “legions” of smaller firms in a largely unconsolidated market.

The report states: “These smaller players need investment to be able to grow and exploit the opportunities of structural market change.”

The study also reveals that banking and insurance are of the greatest interest to private equity managers, who are attracted to deals that can provide opportunities for spinning off non-core assets.

 

News posted:



Related stories to Financial services consolidation tempts private equity managers: