FinecoBank runs, big private equity looks to Italian sgr

(Il Sole 24 Ore Radiocor) - Finecobank up in Piazza Affari, despite weakness in the FTSE MIB . The company's stock gained 2.7 per cent, driven by rumours that the company is in the crosshairs of private equity firms interested in the asset management sector. In particular, as reported by Il Sole 24 Ore, Bain, Cvc and Advent would have on the table some dossiers on the sector and in particular on FinecoBank, due to the company's dual soul, namely investing and brokerage, as well as the good results reported in recent quarters. The Banca Generali , of the Generali group, could also enter the crosshairs to form a pole in asset management: the asset management company's share price climbs 1% to close at EUR 39.

Equita analysts point out that the asset management sector is attractively priced, even considering the recent lean period. While the average price-earnings ratio for the sector at the beginning of 2022 was around 15 times, it is now around 10.5 times. "We believe speculation is also amplified by recent offers against the Hargreaves Lansdown platform, which however - unlike the Italian operators - represents a story of refocusing the business model and does not have a banking licence," they commented, adding: "Overall, in light of the derating on the sector and the gradually improving momentum, we positively assess the growing speculative appeal towards some domestic operators. On the other hand, in light of the complexities associated with the banking licence and ECB supervision, we believe it is more likely that interest will actually manifest itself from industrial rather than financial players'.

Intermonte's experts asserted that "interest in the sector is nothing new and confirms the attractiveness of the Italian wealth management segment which, despite commission levels above the average in other countries, has demonstrated a high resilience and capacity for growth and cash generation". However, the sim's experts also point out that Italian wealth management companies are in many cases licensed by banks and that the regulator does not view control by a private equity firm positively, also in light of Eurovita's recent problems in the insurance sector. "Moreover," they pointed out, "eventual operations should be agreed with management and key personnel of the networks that represent a significant part of the value of these companies".