pricing

M&A Trend: Global Wealth Management Sector Dealmaking Heats Up

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January 9, 2014

Mergers and acquisitions in the global wealth management industry were up in 2013 which is attributed to lower valuations as regulatory pressures put the costs squeeze on wealth managers. There were over 60 deals worth USD 760 billion in this segment of the financial industry in 2013, according Scorpio Partnership in a press release. The average price paid for acquisitions as a proportion of assets under management was 1.22 percent this year, down from 1.98 percent in 2012 and 4.81 percent in 2009, says Scorpio.

 

Reuters reports that private equity groups active in the market include Permira, which acquired Deutsche Bank’s Tilney wealth management arm, as well as Bestinvest, and Carlyle Group, which acquired Diversified Global Asset Management and TCW.

 

Scorpio expects the pace of new deals to remain high in 2014 driven by the same forces that affected dealmaking in 2013. The report has the 2013 activity, but also tracks a total of 236 wealth deals which took place from 2008. (Image source: Scorpio)

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