H&P Financial Services Market 2023 Overview

21st November 2023

Our financial services team has had unprecedented levels of success in the past 12 months. Since their inception in May 2022, the team has expanded market sectors as well as grown from a team of two to a team of ten.

We asked two of our Senior Consultants in this team to give an overview of the European and US financial markets.

As for our US financial services avenue, we asked Senior Consultant, Michael Sansbury to give us an overview of movement as well as our progress in these markets.

The landscape of mergers and acquisitions (M&A) is shifting, with many deals being pushed into 2024, setting the stage for what we anticipate will be a red-hot market in the coming year. Similarly, the IPO market has been sluggish, making it challenging for firms to exit their investments and venture into new deal activity.

Despite these challenges, our performance this year has been robust, marked by high billings, even in a down market, and significant growth as we expanded our private equity team to ten members.

Notably, investor relations positions are rapidly gaining traction in our business, with experienced fundraisers now in higher demand than ever.

Additionally, private credit is currently on fire as businesses seek much-needed cash injections. At the junior level of private equity, we’re witnessing a flurry of activity, as many individuals, eyeing their January bonuses, contemplate making a move. Senior hiring may be more cautious, but the demand for seasoned deal quarterbacks and operators remains constant.

It’s certainly an exciting time in the world of finance!

We then asked Senior Consultant Charlie Scott to give an overview of the European private equity space.

We’re witnessing a more stagnant European market compared to our US counterparts, fuelled by escalating interest rates and a prevailing risk-averse atmosphere. Notably, larger funds have taken a backseat when it comes to hiring which has intensified competition in the vibrant mid-market arenas. Investor relations are continuing to grow particularly within Europe with London being the hub for these profiles to be based with greater coverage across the other European markets.

Moreover, across the European landscape we’re seeing a remarkable rise in the senior recruitment market, apparent by the increase in hiring of ‘rainmakers’ to keep active growth within the market.

Looking towards 2024, we’re anticipating a large surge in deal activity, propelled by funds being forced to deploy capital to complete their fund cycle & close on time.

For a more detailed overview of the financial services markets, please feel free to contact our teams.