Strickland at Palatine likewise says the dynamics that have made financial services an attractive investment opportunity will remain for the foreseeable future, partly as a result of the constant need for financial advice.
“The key challenge for investors is regulation and the high risk of businesses falling foul of it,” he adds. “But if you have the knowledge and understanding of the landscape, it shouldn’t be a deterrent. [We] remain very positive about the prospects for the industry as an investable proposition.”
Thompson at CBPE also predicts that the financial advice industry will continue to be attractive to mid-market private equity companies, in part due to continuing levels of fragmentation.
“While the market is likely to stay fragmented for many years, the next stage of growth will likely also involve some consolidation of consolidators – an opportunity for larger private equity funds.”
Chloe Cheung is a senior features writer at FTAdviser
