Financial services interest The financial services sector is another area that remains on the respondents’ radars. Financial services has been a steady performer for PE firms, with buyout deal value in the sector increasing in each of the last two years. Most financial services M&A is still focused on acquiring niche managers or funds outside the manager’s typical strategy, which they can use to build out new areas without the expense of hiring new teams. Wealth management, specialty finance, fund administration and insurance brokerage businesses have presented attractive buy-and-build opportunities for managers; investment in fintech and digital payments has also proved successful. These financial services deal trends look set to continue animating the market in 2026 and beyond. Of those planning to invest in the financial services sector, the top subsectors being targeted are investment brokerages (74%), payment processing (69%), private credit investment management (57%) and rental/leasing/real estate finance (50%).
In terms of macro-trends affecting the market, 88% of respondents believe credit market changes will be one of the most impactful. The only other macro-trend highlighted by a majority of respondents is AI and technology-driven growth, selected by just over half of respondents (55%). Interest in services businesses also continues to grow, with PE firms turning their focus to accounting, fund administration, specialty finance and other similar financial services businesses in recent years. Accountancy services have been a particularly active area, as seen with New Mountain Capital investing in Grant Thornton and Moss Adams’ strategic merger with Baker Tilly, which created the sixth-largest advisory CPA firm in the U.S. Dechert served as advisor on both of these deals, putting the firm very much at the forefront of this emerging trend.
[If Financial services selected] Which macro-trends are having the greatest impact on your investment thesis and/or investment strategy regarding financial services businesses? (Select up to three)
[If Financial services selected] Which of the following financial services subsectors are you planning to invest in? (Select all that apply)
Invȃstmȃnt brokȃrǸȌȃ/brokȃr dȃǸlȃr/plǸcȃmȃnt ǸȌȃnt
74%
Crȃdit mǸrkȃt chǸnȌȃs
PǸymȃnt procȃssinȌ
88%
69%
ArtificiǸl intȃlliȌȃncȃ/tȃch-drivȃn Ȍrowth
PrivǸtȃ crȃdit invȃstmȃnt mǸnǸȌȃmȃnt
55%
57%
Cybȃrsȃcurity, privǸcy Ǹnd dǸtǸ risks Ǹnd rȃȌulǸtions
RȃntǸl Ǹnd lȃǸsinȌ/rȃǸl ȃstǸtȃ finǸncȃ
50%
38%
WȃǸlth mǸnǸȌȃmȃnt
GlobǸl trǸdȃ
45%
38%
InsurǸncȃ-rȃlǸtȃd
43%
FrǸud Ǹnd Ǹbusȃ ȃnforcȃmȃnt
31%
Principlȃ finǸncȃ
33%
Antitrust considȃrǸtions (forȃiȌn, fȃdȃrǸl Ǹnd stǸtȃ (ȃ.Ȍ., ownȃrship disclosurȃs))
FinǸnciǸl sȃrvicȃs ǸdministrǸtivȃ/sub-ǸdministrǸtivȃ sȃrvicȃs
19%
19%
RȃȌulǸtory considȃrǸtions (Ǹsidȃ from thosȃ prȃviously mȃntionȃd)
Invȃstmȃnt bǸnkinȌ
17%
19%
Equity invȃstmȃnt mǸnǸȌȃmȃnt (includinȌ privǸtȃ ȃquity/vȃnturȃ cǸpitǸl)
14%
RȃtǸil bǸnkinȌ
14%
RȃǸl ȃstǸtȃ invȃstmȃnt mǸnǸȌȃmȃnt
10%
RȃȌistȃrȃd invȃstmȃnt product options
10%
Invȃstmȃnt profȃssionǸl lift outs/Ǹcqui-hirȃs
2%
19
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