Front Line Insights

Statistical analysis and insight into activity and trends in M&A and capital markets.


Investment Services June 2015

Friday, June 12, 2015

William Blair’s Investment Services Industry Insights report reflects M&A activity, transaction multiples and public company valuations, covering both the asset management and broker-dealer sectors. These two sectors reflect our observed overlap of long-term trends and consolidation.

Year-to-date, M&A activity in the asset management sector saw 57 transactions, up approximately 8% from last year. However, the aggregate disclosed volume of these transactions totals $951 million, down from $1.9 billion last year. The broker-dealer sector saw an increase in M&A activity as well with 27 transactions, up approximately 4% from last year. Disclosed dollar volume in the sector decreased from last year as well, with $845 million year-to-date.

Recent market momentum has helped drive stock price performance for the asset management sector over the last 12 months compared with the broader market. Asset management indices increased 13.9% over the last 12 months, above the S&P 500, which was up 9.6% over the same period. Broker-dealer indices have generally outperformed the broader market over the long term. The four broker-dealer segments showed an average return of 17.1%, ranging from a 7.6% gain by boutique broker-dealers to a 27.0% gain by online broker-dealers.

M&A activity in both the asset management and broker-dealer industries remains relatively healthy, and this trend is expected to continue through the rest of the year, driven by a growing U.S. economy and healthy market environment.

Read the full Investment Services Industry Insights June 2015 report.

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