The global financial services industry is large, far-reaching and diverse. With over $14 trillion in global market capitalization, it represents the global economy’s largest sector as measured by market capitalization and has grown significantly in importance over the past 20 years. The financial services industry is composed of many sectors and verticals and we focus on five key segments: bank and non-bank finance companies, insurance, capital markets, asset and wealth management and financial technology and services/payments.
Each sector is highlighted by unique return, growth and leverage characteristics that respond to different economic and competitive forces. As a result, market imbalances and cycle-related investment opportunities may exist in almost any economic environment.
Despite the large opportunity set, navigating the financial services industry requires specialization due to the business model complexities, cyclicality and continuous changes powered by demographic, technological and regulatory factors that characterize the industry. Our experience, expertise and network of relationships cultivated over decades uniquely positions Reverence Capital to identify and capitalize on opportunities in this highly specialized industry.
We take a thematic approach to investing across verticals of financial services and seek to combine our view of long-term strategic developments with best companies and teams in each sector.