finn-ancial Times | finnCap Financials & Insurance quarterly sector note
In this quarter, the finnCap Financials & Insurance Research Team looks at the lessons learned from 2018 financial IPOs. We look at the financial sector IPOs across 2018 in order to determine the lessons that can be learned, informing investment decisions in 2019 and beyond.
There was something to take away from each of the 16 IPOs, though our seven highlights are:
(1) ‘Value’ goes out the window in the platform market;
(2) Be diligent on the distinction between acquisition-led growth paid for with high-rated paper and organic growth;
(3) Advisers can be exciting, but don’t confuse them with platforms;
(4) Wealth managers are stuck in the past;
(5) Fintech doesn’t have to be revolutionary and may simply involve proprietary technology that helps improve existing processes;
(6) It is worth looking into a sector (lending) that is often ignored or valued unfairly;
(7) Don’t bet the house on high growth loss-makers.