One third of private banks are looking to acquire an investment management firm, and a number of investment banks, weary of the fund scandal, are looking to divest their mutual fund units, a new KPMG report.

KPMG surveyed financial service firms across the world and found that the private banks are looking to make their acquisitions within the next three years. Firms within their own nation continue to be of particular interest. The reason banks are looking domestically is because there are a large number of small private banks that do not have the resources to become internationally based.

"The industry is very fragmented, with a few big global players and a large number of small private banks," commented Richard Price, a partner for KPMG transaction services. "Primarily as a result of the smaller size of the majority of players in this sector, we see an overwhelming number of domestic transactions."

Outside of firms’ own nations, Asia Pacific is a region of continuing interest. In 2003, 41% of all private banking acquisitions took place in Asia Pacific, up from 23% in 2000.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.