Impaired capital markets and falling asset valuations have particularly damaged small merchant banks in recent years. However, over the five years to 2022, general improvements in private equity supply and demand for alternative assets are anticipated to benefit merchant banks. Nevertheless, mounting regulation in the financial services sector concerning conflicts of interest is expected to limit revenue growth and profit margins.
This industry primarily makes private equity investments with firm or investor capital into the securities of private or public companies. It also provides a wide range of ancillary bridge, mezzanine, real estate and distressed financing as well as international trade financing and foreign direct investment services in varying degrees. This industry is a segment of the Investment Banking and Securities Dealing industry (IBISWorld report 52311).
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.