Finance Monthly March 2019 Edition

11 www.finance-monthly.com NEWS - MONTHLY ROUND-UP News you Can’t Afford to Miss PATISSERIE VALERIE RESCUED FROM ADMINISTRATION After collapsing into adminis- tration due to alleged fraudu- lent accounting irregularities regarding a £40 million black hole, café chain Patisserie Valerie was saved when it was purchased by an Irish private equity firm. Although around 70 of the chain’s stores had closed immediately as the result of the issue, the deal has saved the remaining 120 branches from closure. In the process of being bought out of administration, around 2,000 jobs have been saved as well. Causeway Capital Partners, the private equity firm behind the deal, invests between €2.5 million and €10 million in es- tablished Irish and UK SMEs. Matt Scaife, who works at the firm, said: “Patisserie Valerie is a heritage brand, much loved by its loyal customers. This investment should mark the end of a turbulent period for customers and suppliers alike.” Mike Ashley’s Sports Direct had also offered a bid on the chain, however, this was can- celled two days later. It had initially offered £15 million but was informed by a KPMG ad- ministrator that it would need to offer around £2 million more, leading it to withdraw. UK REMAINS LEADER IN FINTECH INVESTMENT BUT LOSES GLOBAL CROWN The UK remained the top destination for FinTech in- vestment activity in Europe with over $20.7bn in deals in 2018 but lost its global crown. The UK remained the top destination for FinTech in- vestment activity in Europe with over $20.7bn in deals in 2018, though, the UK lost its global crown from H1 with the activity tailing off in the sec- ond half of the year, accord- ing to the latest KPMG Pulse of FinTech report. Total investment activity in the UK in 2018 was almost four times higher than 2017 levels ($5.6bn) despite the total number of deals drop- ping. The levels reached in the UK accounted for the majority of activity in Eu- rope – half of which came from the $12.8bn WorldPay acquisition in the first half of the year. For the second half of 2018, UK investment activ- ity dropped significantly to a total of $1bn compared to $2.8bn in the same period in 2017, a trend reflected widely across Europe. Globally FinTech invest- ment activity rose to a record $111.8bn, more than double the $50.8bn in 2017, fueled by M&A and buyout deals. 2018 Key Highlights • Mega deals drove a re- cord $111.8B global FinTech investment activity in 2018, led by three $10bn+ deals, as well as an additional 14 $1bn+ M&A deals. All told, 2018 was a year of multiple record highs across FinTech investment, including VC, corporate VC, M&A and PE. • FinTech investment in the Americas rose from $29bn in 2017 to $54.5bn in 2018. Deals volume also increased from 1,039 deals to 1,245. The US accounted for the bulk of this funding - $52.5bn across 1,061 deals. • European FinTech invest- ment activity for 2018 in- creased sharply to $34.2bn from $12.2bn in 2017, thanks to massive M&A and buyout deals, including WorldPay ($12.8bn), Nets ($5.5bn), iZettle ($2.2bn), Fidessa Group ($2.1bn), and IRIS Software Group ($1.75bn). • The total Asia Pacific FinTech investment activ- ity for 2018 of $22.7bn, up from $12.5bn in 2017, was dominated by Ant Financial’s record-setting $14bn deal in Q2’18, as FinTech invest- ment in the region slowed significantly in the second half of the year. • Cross-border M&A rose significantly in 2018, with approximately $53.5bn invested across borders in 155 deals, up from $18.9bn in 153 cross- border deals in 2017. The US drew $28bn in cross- border M&A, while Europe attracted $21.6bn. • Investment flowed at a significant pace into key subsectors and technolo- gies – RegTech invest- ment surged to $3.7bn in 2018 from $1.2bn in 2017, while investment in block- chain remained strong at $4.5bn in 2018, just off the $4.8bn in 2017.