Following a high point in 2023, M&A activity in the fund administration and corporate services sector moderated in 2024. While leading consolidators took a more cautious approach, deal flow from other players gained momentum in anticipation of upcoming exits. Despite the slowdown in overall deal volume, investor appetite, particularly from private equity, remains robust, driven by high-performing platforms and emerging strategic trends.
Looking ahead
The outlook for the sector remains strong. With regulatory pressures intensifying and client needs becoming more complex, outsourcing is set to grow. Emerging markets like APAC and the UAE are gaining traction, drawing increased attention from investors. Meanwhile, several PE-backed platforms are poised to hit the market in the next 12–18 months, setting the stage for renewed activity and strategic repositioning across the industry.
Consolidation slows, strategy sharpens
After a surge in deal-making in 2023, M&A activity in the sector dipped in 2024. Fewer acquisitions from leading consolidators, though activity from others picked up ahead of expected exits. This suggests a shift in strategy, with investors becoming more selective and focused on long-term value creation rather than rapid scale.
Fund administration and corporate services dominate
Investor appetite remains strongest in these areas, though private client services saw a relative uptick in 2024. The sector continues to attract significant private equity interest, with major investments across all service lines and new trends emerging, such as continuation vehicles and strategic secondary deals.
Premiums are still in play
Top-tier platforms continue to command double-digit EBITDA multiples, particularly those showing strong organic growth, margin performance, and scalable infrastructure. While scale remains a key consideration, quality of operations and future growth potential are equally important in valuation discussions.
Looking ahead
The outlook for the sector remains strong. With regulatory pressures intensifying and client needs becoming more complex, outsourcing is set to grow. Emerging markets like APAC and the UAE are gaining traction, drawing increased attention from investors. Meanwhile, several PE-backed platforms are poised to hit the market in the next 12–18 months, setting the stage for renewed activity and strategic repositioning across the industry.
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Greg Cant
Managing Director
Transactions
Not just numbers on a balance sheet, our transactions represent over 20 years’ commitment to our clients’ future. Helping them change the game. Even before it was ready to be changed.
Acquisition of a nature-based solutions specialist to anchor Crédit Agricole's new Natural Capital business line
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Investment to expand access to SME funding solutions
Adviser to Freshstream Investment Partners LLP on raising finance to support their investment in Portman Finance Group
Creating a platform for long-term growth through strategic funding solutions
Adviser to My Pension Expert on its acquisition finance and lender education process
Strategic acquisition enhances technology, support and services across the property and mortgage market
Adviser to BetterHome Group on its acquisition of Mortgage Support Services Ltd
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Tobias Schätzmüller
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