Global private equity and venture capital investments in the banking sector dropped in 2022, reflecting the overall downturn in deals as interest rates rose and concerns over the direction of the global economy increased.
The aggregate transaction value stood at $2.03 billion in 2022, down 63.5% from $5.57 billion the previous year, according to S&P Global Market Intelligence data. The number of transactions also fell to 59 from 70 in 2021, according to S&P Global Market Intelligence data.
The US and Canada recorded the highest deal value in 2022 with $992.6 million worth of announced investments, followed by Europe with $811.3 million.
In the fourth quarter of 2022, deal value was at $240 million across 11 deals, compared with $1.81 billion in aggregate value across 18 transactions in the same period the year prior.
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So far in 2023, private equity and venture capital firms have either announced or completed five deals totaling $110 million.
The largest private equity transaction between Jan. 1, 2022, and March 22, 2023, was the $620 million financing round of CRB Group Inc., the parent company of Cross River Bank. Eldridge Industries LLC and Andreessen Horowitz LLC led the funding round.
Clearing and embedded banking platform ClearBank Ltd.'s $230.6 million funding round came in second. Apax Partners LLP's The Apax Digital Fund led the round.
