Private equity (PE) investment in Europe’s financial services sector has experienced a significant uptick in early 2025, with deal values surpassing €7.8 billion in the first quarter, marking a 22% increase from the same period in 2024. Despite this growth, the number of deals declined to 101, the lowest since Q3 2021, indicating a trend towards larger, more concentrated transactions.
Key Transactions
- BBGI Global Infrastructure Acquisition: Canadian institutional investor British Columbia Investment Management Corporation (BCI) agreed to acquire Luxembourg-based infrastructure investor BBGI Global Infrastructure for £1.06 billion (€1.27 billion), offering a 21% premium over its previous share price.
- Hargreaves Lansdown Take-Private: A consortium comprising CVC Capital Partners, Nordic Capital, and the Abu Dhabi Investment Authority (ADIA) completed the £5.4 billion (€6.3 billion) acquisition of UK investment platform Hargreaves Lansdown. The deal included a 54% premium over the company’s share price prior to the offer.
Sector Trends
Asset management has been a focal point for PE activity, with four of the top ten largest deals in Q1 2025 occurring in this sub-sector. This trend reflects a broader strategy among investors to capitalize on opportunities for digital transformation and consolidation within financial services. According to Ashurst’s 2025 predictions, financial services are expected to remain a primary channel for deploying private equity capital, driven by the sector’s resilience and growth potential.
Market Outlook
While the surge in PE investment signals strong confidence in the European financial services sector, the impact of global economic factors, such as currency fluctuations and market volatility, may influence future deal activity. The industry’s adaptability and ongoing consolidation efforts will be crucial in sustaining this growth trajectory.
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