Financial Services Dealtracker: Q3 2024

The third quarter of 2024 witnessed increased deal-making in financial services sector, driven by consolidation, robust capital markets, and shifting global monetary policies. This quarter's performance showcased stability and growth, characterized by rising M&A, private equity/venture capital investments, and strategic transactions. This edition provides a comprehensive analysis of Q3 deal-making activity, covering M&A, PE/VC, capital markets, and emerging trends, offering valuable insights for industry stakeholders and financial services professionals.

Key insights from the Financial Services Dealtracker Q3 2024:

• Increase in deal volumes: Q3 continued its rise in the overall deal activity over the last two years, marking the highest quarterly volumes and the second highest quarterly values since Q2 2022. This surge also led to an increase in the average deal size, indicating heightened investor interest. The sector’s performance aligns with the broader trend of increased deal activity across India.
• Transaction value upswing: Domestic deals dominated the deal activity raising their average deal size from USD 12.4 million to USD 83 million over Q2 2024 driven by four high value deals (>$100mn). Outbound consolidations which saw muted activity since the start of the year, witnessed one deal in the fin tech segment expanding reach in the MENA Region.
• PE market performance: PE activity witnessed the second highest volumes and values since Q3 2022. This rise in values is primarily driven by six big ticket deals (>$100 mn) worth USD 1.4 billion dominated by the banking & NBFC segment, compared to only three worth USD 836 million in the last quarter.