Big List of Private Equity Targets in Financial Services

There is a recent boutique research report from earlier in the week showing a list of potential private equity targets from a specialty brokerage firm that I was very positive on from even before its IPO: Keefe Bruyette & Woods (KBW).  The truth is that this company is probably only behind Goldman Sachs (GS) as far as its knowledge of what is going on in the North American financial services sector, and the argument is that KBW is considered the number one firm as far as independent coverage of the financial services sector.  It is too bad the company did not get this out at the end of last year to include many other names that have been gobbled up, but it really feels as though every firm is ‘cramming for finals’ in the M&A world with the private equity superstars.

PROCESSING: Fidelity National Information Services (FIS); FairIsaac (FIC); ChoicePoint (CPS).  On a side note, Total SystemsSolutions (TSS) is Jim Cramer’s pick in the sub-sector. RATINGS: Moody’s (MCO).  INSURANCE BROKERS (P&C): Marsh and McClennan (MMC), AON Corp. (AOC).  INSURANCE: AFLAC (AFL), Conseco (CNO), and American Safety (ASI).  MONEY MANAGEMENT: Legg Mason (LM), Janus Capital (JNS), Waddell & Reed (WDR), Federated Investors (FII), National Financial (NFP).  LOANS, STUDENT LOAN: Nelnet (NNI).

We have our own list of targets in this financial services sector for our newsletter subscribers.  Some of these companies make sense, and there are many others elsewhere in overlapping segments in financial services that may actually make more sense.

Jon C. Ogg
May 31, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.