FinTech, WealthTech & InsurTech
The FinTech market has evolved from a highly niche segment to a global, disruptive industry with record levels of investing and M&A activity.
Financial institutions continue to face significant pressures on revenues and margins, which has led to an increasing demand for external technologies and outsourcing of non-core activities as banks and asset managers seek to modernise their infrastructures, improve efficiency, offer best-in-class customer experience, leverage emerging technologies such as AI, robotics and blockchain and adhere to an evolving regulatory environment. M&A continues to be very active in the capital markets sector as vendors use acquisitions to accelerate organic growth, acquire new/more modern products and broaden their solution portfolio. PE is also very attracted to the segment given the size of the addressable market, the customer stickiness and attractive business models. Arma has a market-leading presence in this sector having sold businesses to strategic players such as Broadridge, Cognizant, Factset, IHS Markit, ION Trading, IRESS and Temenos.
The insurance industry is also experiencing seismic change with the emergence of disruptive business models, continued cost pressures, heightening regulatory environment and the need for more differentiated offerings with faster time to market and smart pricing. Investment in modern technology systems is critical for both the traditional as well as disruptive insurance players as they digitise their processes across multiple channels, automate their systems to reduce costs and analyse data to enhance services. The InsurTech market remains highly fragmented and will continue to consolidate as vendors use M&A to increase scale, broaden their product offerings and extend their geographic reach. The InsurTech market is also extremely attractive for private equity given the positive market drivers, the highly attractive business models and the opportunity to create category leaders. Arma has been one of the most active advisers in the sector, having completed a number of transactions with the likes of AgencyPort, Acturis, RGI, SSP and TIA.
- $6.1 billion aggregate deal value
- 77% cross-border deals
- 18x EBITDA multiple on average
Sub-segment coverage and team
- Software for financial institutions
- Capital market software and trading technology platforms
- Risk management
- Accounting/Reporting technology
- Wealth management software
- Insurance carrier platforms
- Broker software
Managing Partner, London
Managing Director, London/Munich
HOLD AND DRAG TO NAVIGATE through THE DEALS
- Dec 2021acquired by
- Nov 2021growth recapitalisation by
- Jul 2021acquired by
- Jul 2021majority growth investment by
- Jun 2021growth investment by