3.2.6.1Vertical

Custody & Clearing Services

Prime brokers and custodians holding and settling securities.

Market snapshot

These figures describe Securities Processing & Back Office (3.2.6), the segment that Custody & Clearing Services sits within — not Custody & Clearing Services on its own.

FragmentationConsolidatingEstimate

No discrete Census NAICS code under outsourcing — securities processing sits within securities-industry (523xxx) and data-processing classifications, so the segment is not separately sized here.

Business model & economics

Revenue model

Asset-based and per-transaction processing fees

Key economics

Recurring revenue
High

embedded, asset-based processing

EBITDA margin
20–35%
Capex intensity
Low

Characteristics

  • The operational infrastructure of investing.
  • High switching costs once embedded in operations.
  • Asset managers outsourcing more middle/back office.

M&A deal context

Deal activityModerate

Who’s acquiring

  • Securities-services majors
  • Fund-administration consolidators
  • PE-backed processing platforms

What’s driving deals

  • Scale and technology separating the leaders.
  • Outsourcing of middle- and back-office functions.
  • Consolidation of fund administrators.

Find Custody & Clearing Services acquisition targets

Search Acquisera’s index for companies classified under Custody & Clearing Services (3.2.6.1) and build a targeted deal pipeline.

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