The number of private equity investments in the financial services sector is up 17% in the first half of 2010 from the same period a year earlier, with 35 deals totaling $8 billion, compared with 30 transactions valued at $7.3 billion for the first half of 2009, according to a report by Freeman & Co.
The average transaction was smaller in the first half of 2010, at $331.2 million, down from $365 million in the first half of 2009.
Four of the 30 transactions were in asset management, totaling $226 million, compared with one deal worth $16 million for the same period a year earlier.
Eric Weber, Freeman managing director and COO, said in an interview that volatile markets have made it more difficult in recent months for private equity firms to make deals.
“Now that there is some stabilization in flows and the market generally, you should see some increase in activity over the next 12 months,” he said.