Post by Elphinstone Research Group

OUT NOW - Our Latest Private Equity Sector Deep Dive Private Equity in the Financial Services sector Our Private Equity team at Elphinstone Research Group has put together a comprehensive sector deep dive examining the shifting landscape of private capital within the global financial services ecosystem. The report provides a granular look at how sponsors are navigating the interconnected network of banking, insurance, asset management, and fintech. With buyout dry powder reaching a record $1.2 trillion by mid-2025, general partners are under significant pressure to deploy capital that is approaching or exceeding standard investment periods. This report analyses how sponsors are responding by concentrating capital in high-conviction, asset-light verticals where operational improvements and market consolidation can justify premium entry multiples. Key Focus Areas: The report analyses the 14% of global PE deal value currently concentrated in financial services, with a specific emphasis on capital-light verticals like Insurance distribution (26%) and Payments (22%). We explore how economic value is shifting toward recurring fee models in wealth and asset management, where sponsors are utilising "buy-and-build" strategies to industrialise fragmented markets. Additionally, the research examines the integration of Agentic AI as a primary value-creation lever to modernise legacy infrastructure and evaluates strategic entry structures such as take-privates and GP-stake acquisitions through landmark case studies involving firms like Blackstone. Full report can also be read on our website: https://lnkd.in/eW-cvMDe Private Equity Research Head: Sonny Hill Private Equity Research Analysts: Toby Ferneyhough, Henry Albery, Henry Mok, Nermine Boubouh, Addison Strear, Nicolò Parenzan, Aadi Patel Khanuja All information contained herein is derived from publicly available sources believed to be reliable, but accuracy and completeness are not guaranteed. This report does not constitute investment advice or a solicitation to buy or sell securities. Elphinstone Research Group | Scottish Registered Charity No.SC054318