Sector Outlook: Financial Services
We have delivered a strong run across our Financial Services practice, led by Solomon Ishack, with sustained activity in wealth management, financial services technology, offshore fiduciary services, insurance, compliance, structured products distribution, and other verticals.
We are seeing wealth management M&A re-accelerate, particularly financial advice platforms and their eventual bolt-ons. Most recently, we supported K3 Capital Group on its investment in Pareto Financial Planning and Luna Investment Management, which underpin the launch of K3’s new Financial Services division.
In offshore fiduciary services, we have been active in supporting Summit Group, backed by Sovereign Capital, on its acquisition of R&H Jersey Our work across private client, corporate services and fund administration continues to highlight the importance of jurisdictional breadth, robust governance and technology enabled operating models, which together support scalability and margin expansion. For more on our perspectives, see our recent thought piece on offshore fiduciary services here.
Beyond this, we delivered diligence and strategy work across a few other sub sectors. In financial services technology, we supported LDC on its investment in LendingMetrics. In insurance, we supported Connection Capital on its MBO of Hood Group. In structured products distribution, we supported WestBridge on its investment in Causeway Securities. We have also recently seen growing momentum in retail wealth propositions that are sold to employers as part of employee benefits packages, alongside increased activity in pensions technology and services.
For the rest of this year and next, we expect continued activity for PE-backed IFA consolidators. In offshore fiduciary services, investment into PE-backed platforms and independents should remain active across private client, corporate services and fund administration. We also see a healthy pipeline of specialist B2B technology selling into distinct financial services verticals with varied scale ambitions. After a quieter 12 months, compliance and financial crime consultancies platform deals appear set for renewed PE interest given market tailwinds, the ongoing level of market fragmentation and the appeal of recurring retainer-based revenues.
“Dealflow has remained resilient,” said Solomon Ishack, “From wealth platforms to fiduciary services and B2B software, we are helping investors evidence equity stories, de-risk integration and accelerate value creation.”
For those interested in exploring opportunities and understanding our credentials in this space, please contact:
Solomon Ishack
sishack@armstrong-ts.com
+44 7943 036 633
Rupert Cookson
rcookson@armstrong-ts.com
+44 7983 110 150