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Exit and Growth Strategies for Middle Market Businesses

M&A Quarterly News In The Financial Services Industry Sector

By David Sinyard | Feb 06, 2019

The report below presents you with a good overview of the first quarter M&A activity in the Financial Services Industry Sector. M&A activity for North American based target companies in the Financial Services sector for Q4 2018 included 208 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions was closed in December when Stone Point Capital, LLC acquired Rialto Capital Management, LLC from Lennar Corp for US$340 million. The acquisition enables Stone Point Capital to further expand its business portfolio. Rialto Capital Management is located in Miami, Florida and acts as an alternative investment manager. Stone Point Capital is a global private equity firm located in Greenwich, Connecticut that manages the Trident Funds.

Industry Indicators

  • US corporate profits, an indicator of corporate demand for financial planning and investment advising, rose 10.3% in the third quarter of 2018 compared to the same period in 2017.
  • The bank prime loan rate, a tool for financial planners and investment advisers was 5.25% as of the week of December 12, 2018, up from a rate of 4.5% the same week in 2017.
  • US personal income, which is a driver for financial planning and investment services, rose 4.3% in October 2018 compared to the same month in 2017.
  • Total US revenue for other financial investment activities, which includes financial planners and investment advisors, rose 4.9% in the third quarter of 2018 compared to the previous year.

Posted by David Sinyard.

Read the Entire Financial Services 1st Quarter Newsletter Here


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