{"id":41374,"date":"2023-10-18T13:31:43","date_gmt":"2023-10-18T11:31:43","guid":{"rendered":"https:\/\/capitalmind.com\/why-ma-will-remain-key-for-growing-the-uks-wealth-sector\/"},"modified":"2023-10-18T14:08:00","modified_gmt":"2023-10-18T12:08:00","slug":"why-ma-will-remain-key-for-growing-the-uks-wealth-sector","status":"publish","type":"post","link":"https:\/\/working.capitalmind.com\/de\/why-ma-will-remain-key-for-growing-the-uks-wealth-sector\/","title":{"rendered":"Why M&amp;A will remain key for growing the UK\u2019s wealth sector"},"content":{"rendered":"\n<p>Author: <strong>Tom Lewin, Head of Financial Institutions Group, M&amp;A Advisory<\/strong><\/p>\n\n\n\n<p><strong>We believe the UK\u2019s wealth sector is attractive for investors thanks to its long-term fundamentals. M&amp;A looks set to remain a key strategy for driving growth and creating shareholder value.<\/strong><\/p>\n\n\n\n<p>Consolidation has been one of the most significant themes in the UK\u2019s wealth sector in recent years. According to Investec analysis, the top five largest consolidators by volume have announced over 120 acquisitions since 2018.<\/p>\n\n\n\n<p>As our latest report on the wealth sector shows, we believe that M&amp;A will remain key to the sector\u2019s growth.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-do-markets-see-the-wealth-sector\">How do markets see the wealth sector?<\/h2>\n\n\n\n<p>For publicly listed firms, the current macroeconomic uncertainty has seen organic growth slow, with assets under management (AUM) dragging due to market movements.<\/p>\n\n\n\n<p>As a result, price-to-earnings (PE) multiples have also been squeezed, with PE multiples for wealth managers now standing at 12.1, compared to the five-year average of 15.0.<\/p>\n\n\n\n<p>Meanwhile in the private markets, there are more than 30 private equity-backed businesses across the sector. There was a flurry of activity in 2021 with 15 new investments. Private investment has slowed this year with seven new investments as of October 22.<\/p>\n\n\n\n<p>As our latest report shows, deal activity has been resilient over the last three years, with a quarterly average of 34 M&amp;A and IPO transactions. This year to date has been above average for the three quarters to date.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-sector-trends\">Sector trends<\/h2>\n\n\n\n<p>When it comes to current valuations, the markets appear to be overly discounting near-term risks and are failing to reflect the long-term fundamentals of the sector.<\/p>\n\n\n\n<p>We believe there are four reasons that the long-term fundamentals of the UK wealth sector are positive:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">The vast \u2018advice gap\u2019 and rise of the mass affluent<\/h4>\n\n\n\n<p>The UK wealth market is fragmented, with the \u2018mass affluent\u2019 segment (commonly defined as those with investable wealth of between \u00a3100,000 and \u00a3250,000) set to grow the fastest. As the mass affluent cohort grows, demand will grow for financial planning as these people look for solutions to fund their retirement.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">There are offsetting drivers of macro uncertainty<\/h4>\n\n\n\n<p>For wealth companies, rising interest rates will partially offset the impact of the short-term decline in net inflows, at the profit before tax level. We also believe that market volatility will increase the demand for financial advice, as people look for ways to navigate the uncertainty.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Favourable structural factors are driving demand for wealth offerings<\/h4>\n\n\n\n<p>Changes to the pensions market have led to a structural increase in AUA (explanation). At the same time, increased flexibility and choice for savers have increased the demand for advice. Meanwhile, fiscal policy changes \u2013 or even the discussion of potential changes \u2013 have also led to an increased desire for financial advice.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Vertically integrated models can benefit from sector trends<\/h4>\n\n\n\n<p>Vertically integrated models (where a firm combines offerings such as financial advice, platforms, or investment management) are the best placed to generate good outcomes for both clients and shareholders. The declining number of financial advisers in the UK will benefit vertically integrated firms by supporting margins.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.investec.com\/en_gb\/focus\/investing\/wealth-market-update.html\" target=\"_blank\" rel=\"noreferrer noopener\">Read our report for more insight.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Author: Tom Lewin, Head of Financial Institutions Group, M&amp;A Advisory We believe the UK\u2019s wealth sector is attractive for investors&#8230;<\/p>\n","protected":false},"author":17,"featured_media":41352,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[3801],"tags":[],"news-event-type":[],"dealtype":[],"class_list":["post-41374","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sectornews-de"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.10 (Yoast SEO v26.2) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Why M&amp;A will remain key for growing the UK\u2019s wealth sector | Investec Business Advisory<\/title>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"de_DE\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why M&amp;A will remain key for growing the UK\u2019s wealth sector\" \/>\n<meta property=\"og:description\" content=\"Author: Tom Lewin, Head of Financial Institutions Group, M&amp;A Advisory We believe the UK\u2019s wealth sector is attractive for investors...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/working.capitalmind.com\/de\/why-ma-will-remain-key-for-growing-the-uks-wealth-sector\/\" \/>\n<meta property=\"og:site_name\" content=\"Investec Business Advisory\" \/>\n<meta property=\"article:published_time\" content=\"2023-10-18T11:31:43+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-10-18T12:08:00+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/working.capitalmind.com\/wp-content\/uploads\/2023\/10\/acd4db98-5540-41e5-b448-0585fbc906f9-transformed-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1050\" \/>\n\t<meta property=\"og:image:height\" content=\"700\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Kavita Datta Chaudhuri\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Verfasst von\" \/>\n\t<meta name=\"twitter:data1\" content=\"Kavita Datta Chaudhuri\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/working.capitalmind.com\/de\/why-ma-will-remain-key-for-growing-the-uks-wealth-sector\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/working.capitalmind.com\/de\/why-ma-will-remain-key-for-growing-the-uks-wealth-sector\/\"},\"author\":{\"name\":\"Kavita Datta Chaudhuri\",\"@id\":\"https:\/\/working.capitalmind.com\/de\/#\/schema\/person\/6572ad73a6b12e3d65c0281543967f10\"},\"headline\":\"Why M&amp;A will remain key for growing the UK\u2019s wealth sector\",\"datePublished\":\"2023-10-18T11:31:43+00:00\",\"dateModified\":\"2023-10-18T12:08:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/working.capitalmind.com\/de\/why-ma-will-remain-key-for-growing-the-uks-wealth-sector\/\"},\"wordCount\":525,\"publisher\":{\"@id\":\"https:\/\/working.capitalmind.com\/de\/#organization\"},\"image\":{\"@id\":\"https:\/\/working.capitalmind.com\/de\/why-ma-will-remain-key-for-growing-the-uks-wealth-sector\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/working.capitalmind.com\/wp-content\/uploads\/2023\/10\/acd4db98-5540-41e5-b448-0585fbc906f9-transformed-1.jpg\",\"articleSection\":[\"Sektor und Produkt Insights\"],\"inLanguage\":\"de\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/working.capitalmind.com\/de\/why-ma-will-remain-key-for-growing-the-uks-wealth-sector\/\",\"url\":\"https:\/\/working.capitalmind.com\/de\/why-ma-will-remain-key-for-growing-the-uks-wealth-sector\/\",\"name\":\"Why M&amp;A will remain key for growing the UK\u2019s wealth sector | Investec Business Advisory\",\"isPartOf\":{\"@id\":\"https:\/\/working.capitalmind.com\/de\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/working.capitalmind.com\/de\/why-ma-will-remain-key-for-growing-the-uks-wealth-sector\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/working.capitalmind.com\/de\/why-ma-will-remain-key-for-growing-the-uks-wealth-sector\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/working.capitalmind.com\/wp-content\/uploads\/2023\/10\/acd4db98-5540-41e5-b448-0585fbc906f9-transformed-1.jpg\",\"datePublished\":\"2023-10-18T11:31:43+00:00\",\"dateModified\":\"2023-10-18T12:08:00+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/working.capitalmind.com\/de\/why-ma-will-remain-key-for-growing-the-uks-wealth-sector\/#breadcrumb\"},\"inLanguage\":\"de\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/working.capitalmind.com\/de\/why-ma-will-remain-key-for-growing-the-uks-wealth-sector\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"de\",\"@id\":\"https:\/\/working.capitalmind.com\/de\/why-ma-will-remain-key-for-growing-the-uks-wealth-sector\/#primaryimage\",\"url\":\"https:\/\/working.capitalmind.com\/wp-content\/uploads\/2023\/10\/acd4db98-5540-41e5-b448-0585fbc906f9-transformed-1.jpg\",\"contentUrl\":\"https:\/\/working.capitalmind.com\/wp-content\/uploads\/2023\/10\/acd4db98-5540-41e5-b448-0585fbc906f9-transformed-1.jpg\",\"width\":1050,\"height\":700},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/working.capitalmind.com\/de\/why-ma-will-remain-key-for-growing-the-uks-wealth-sector\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/working.capitalmind.com\/de\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Why M&amp;A will remain key for growing the UK\u2019s wealth sector\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/working.capitalmind.com\/de\/#website\",\"url\":\"https:\/\/working.capitalmind.com\/de\/\",\"name\":\"Investec Business Advisory\",\"description\":\"Investec Business Advisory\",\"publisher\":{\"@id\":\"https:\/\/working.capitalmind.com\/de\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/working.capitalmind.com\/de\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"de\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/working.capitalmind.com\/de\/#organization\",\"name\":\"Capitalmind Investec\",\"url\":\"https:\/\/working.capitalmind.com\/de\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"de\",\"@id\":\"https:\/\/working.capitalmind.com\/de\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/working.capitalmind.com\/wp-content\/uploads\/2020\/01\/Logo_Investec_cmjn_6.jpg\",\"contentUrl\":\"https:\/\/working.capitalmind.com\/wp-content\/uploads\/2020\/01\/Logo_Investec_cmjn_6.jpg\",\"width\":1120,\"height\":1121,\"caption\":\"Capitalmind Investec\"},\"image\":{\"@id\":\"https:\/\/working.capitalmind.com\/de\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.linkedin.com\/company\/capitalmind---corporate-finance-advisory\",\"https:\/\/www.youtube.com\/channel\/UC4bVt7iNejh8tGT6Qfa9R4w\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/working.capitalmind.com\/de\/#\/schema\/person\/6572ad73a6b12e3d65c0281543967f10\",\"name\":\"Kavita Datta Chaudhuri\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"de\",\"@id\":\"https:\/\/working.capitalmind.com\/de\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/08c4c10f6742fd81b9f65fccc841eaa2a13f44e4dee73615cee683b492245f3f?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/08c4c10f6742fd81b9f65fccc841eaa2a13f44e4dee73615cee683b492245f3f?s=96&d=mm&r=g\",\"caption\":\"Kavita Datta Chaudhuri\"},\"url\":\"https:\/\/working.capitalmind.com\/de\/author\/kavitachaudhuri\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Why M&amp;A will remain key for growing the UK\u2019s wealth sector | Investec Business Advisory","robots":{"index":"noindex","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"og_locale":"de_DE","og_type":"article","og_title":"Why M&amp;A will remain key for growing the UK\u2019s wealth sector","og_description":"Author: Tom Lewin, Head of Financial Institutions Group, M&amp;A Advisory We believe the UK\u2019s wealth sector is attractive for investors...","og_url":"https:\/\/working.capitalmind.com\/de\/why-ma-will-remain-key-for-growing-the-uks-wealth-sector\/","og_site_name":"Investec Business Advisory","article_published_time":"2023-10-18T11:31:43+00:00","article_modified_time":"2023-10-18T12:08:00+00:00","og_image":[{"width":1050,"height":700,"url":"https:\/\/working.capitalmind.com\/wp-content\/uploads\/2023\/10\/acd4db98-5540-41e5-b448-0585fbc906f9-transformed-1.jpg","type":"image\/jpeg"}],"author":"Kavita Datta Chaudhuri","twitter_card":"summary_large_image","twitter_misc":{"Verfasst von":"Kavita Datta Chaudhuri"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/working.capitalmind.com\/de\/why-ma-will-remain-key-for-growing-the-uks-wealth-sector\/#article","isPartOf":{"@id":"https:\/\/working.capitalmind.com\/de\/why-ma-will-remain-key-for-growing-the-uks-wealth-sector\/"},"author":{"name":"Kavita Datta Chaudhuri","@id":"https:\/\/working.capitalmind.com\/de\/#\/schema\/person\/6572ad73a6b12e3d65c0281543967f10"},"headline":"Why M&amp;A will remain key for growing the UK\u2019s wealth sector","datePublished":"2023-10-18T11:31:43+00:00","dateModified":"2023-10-18T12:08:00+00:00","mainEntityOfPage":{"@id":"https:\/\/working.capitalmind.com\/de\/why-ma-will-remain-key-for-growing-the-uks-wealth-sector\/"},"wordCount":525,"publisher":{"@id":"https:\/\/working.capitalmind.com\/de\/#organization"},"image":{"@id":"https:\/\/working.capitalmind.com\/de\/why-ma-will-remain-key-for-growing-the-uks-wealth-sector\/#primaryimage"},"thumbnailUrl":"https:\/\/working.capitalmind.com\/wp-content\/uploads\/2023\/10\/acd4db98-5540-41e5-b448-0585fbc906f9-transformed-1.jpg","articleSection":["Sektor und Produkt Insights"],"inLanguage":"de"},{"@type":"WebPage","@id":"https:\/\/working.capitalmind.com\/de\/why-ma-will-remain-key-for-growing-the-uks-wealth-sector\/","url":"https:\/\/working.capitalmind.com\/de\/why-ma-will-remain-key-for-growing-the-uks-wealth-sector\/","name":"Why M&amp;A will remain key for growing the UK\u2019s wealth sector | Investec Business Advisory","isPartOf":{"@id":"https:\/\/working.capitalmind.com\/de\/#website"},"primaryImageOfPage":{"@id":"https:\/\/working.capitalmind.com\/de\/why-ma-will-remain-key-for-growing-the-uks-wealth-sector\/#primaryimage"},"image":{"@id":"https:\/\/working.capitalmind.com\/de\/why-ma-will-remain-key-for-growing-the-uks-wealth-sector\/#primaryimage"},"thumbnailUrl":"https:\/\/working.capitalmind.com\/wp-content\/uploads\/2023\/10\/acd4db98-5540-41e5-b448-0585fbc906f9-transformed-1.jpg","datePublished":"2023-10-18T11:31:43+00:00","dateModified":"2023-10-18T12:08:00+00:00","breadcrumb":{"@id":"https:\/\/working.capitalmind.com\/de\/why-ma-will-remain-key-for-growing-the-uks-wealth-sector\/#breadcrumb"},"inLanguage":"de","potentialAction":[{"@type":"ReadAction","target":["https:\/\/working.capitalmind.com\/de\/why-ma-will-remain-key-for-growing-the-uks-wealth-sector\/"]}]},{"@type":"ImageObject","inLanguage":"de","@id":"https:\/\/working.capitalmind.com\/de\/why-ma-will-remain-key-for-growing-the-uks-wealth-sector\/#primaryimage","url":"https:\/\/working.capitalmind.com\/wp-content\/uploads\/2023\/10\/acd4db98-5540-41e5-b448-0585fbc906f9-transformed-1.jpg","contentUrl":"https:\/\/working.capitalmind.com\/wp-content\/uploads\/2023\/10\/acd4db98-5540-41e5-b448-0585fbc906f9-transformed-1.jpg","width":1050,"height":700},{"@type":"BreadcrumbList","@id":"https:\/\/working.capitalmind.com\/de\/why-ma-will-remain-key-for-growing-the-uks-wealth-sector\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/working.capitalmind.com\/de\/"},{"@type":"ListItem","position":2,"name":"Why M&amp;A will remain key for growing the UK\u2019s wealth sector"}]},{"@type":"WebSite","@id":"https:\/\/working.capitalmind.com\/de\/#website","url":"https:\/\/working.capitalmind.com\/de\/","name":"Investec Business Advisory","description":"Investec Business Advisory","publisher":{"@id":"https:\/\/working.capitalmind.com\/de\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/working.capitalmind.com\/de\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"de"},{"@type":"Organization","@id":"https:\/\/working.capitalmind.com\/de\/#organization","name":"Capitalmind Investec","url":"https:\/\/working.capitalmind.com\/de\/","logo":{"@type":"ImageObject","inLanguage":"de","@id":"https:\/\/working.capitalmind.com\/de\/#\/schema\/logo\/image\/","url":"https:\/\/working.capitalmind.com\/wp-content\/uploads\/2020\/01\/Logo_Investec_cmjn_6.jpg","contentUrl":"https:\/\/working.capitalmind.com\/wp-content\/uploads\/2020\/01\/Logo_Investec_cmjn_6.jpg","width":1120,"height":1121,"caption":"Capitalmind Investec"},"image":{"@id":"https:\/\/working.capitalmind.com\/de\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.linkedin.com\/company\/capitalmind---corporate-finance-advisory","https:\/\/www.youtube.com\/channel\/UC4bVt7iNejh8tGT6Qfa9R4w"]},{"@type":"Person","@id":"https:\/\/working.capitalmind.com\/de\/#\/schema\/person\/6572ad73a6b12e3d65c0281543967f10","name":"Kavita Datta Chaudhuri","image":{"@type":"ImageObject","inLanguage":"de","@id":"https:\/\/working.capitalmind.com\/de\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/08c4c10f6742fd81b9f65fccc841eaa2a13f44e4dee73615cee683b492245f3f?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/08c4c10f6742fd81b9f65fccc841eaa2a13f44e4dee73615cee683b492245f3f?s=96&d=mm&r=g","caption":"Kavita Datta Chaudhuri"},"url":"https:\/\/working.capitalmind.com\/de\/author\/kavitachaudhuri\/"}]}},"_links":{"self":[{"href":"https:\/\/working.capitalmind.com\/de\/wp-json\/wp\/v2\/posts\/41374","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/working.capitalmind.com\/de\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/working.capitalmind.com\/de\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/working.capitalmind.com\/de\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/working.capitalmind.com\/de\/wp-json\/wp\/v2\/comments?post=41374"}],"version-history":[{"count":0,"href":"https:\/\/working.capitalmind.com\/de\/wp-json\/wp\/v2\/posts\/41374\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/working.capitalmind.com\/de\/wp-json\/wp\/v2\/media\/41352"}],"wp:attachment":[{"href":"https:\/\/working.capitalmind.com\/de\/wp-json\/wp\/v2\/media?parent=41374"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/working.capitalmind.com\/de\/wp-json\/wp\/v2\/categories?post=41374"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/working.capitalmind.com\/de\/wp-json\/wp\/v2\/tags?post=41374"},{"taxonomy":"news-event-type","embeddable":true,"href":"https:\/\/working.capitalmind.com\/de\/wp-json\/wp\/v2\/news-event-type?post=41374"},{"taxonomy":"dealtype","embeddable":true,"href":"https:\/\/working.capitalmind.com\/de\/wp-json\/wp\/v2\/dealtype?post=41374"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}