A Quieter Way to Grow

It was a low-key announcement. ABN Amro was acquiring NIBC Bank from Blackstone. No public uproar. No parliamentary scrutiny. No media storm. Just another line in the business pages.

Compare that to the storm kicked up by BBVA’s failed attempt to take over Sabadell. Political backlash in Spain dominated the headlines. Regulators hesitated. The deal didn’t happen.

That contrast explains a lot about what’s happening across European banking. Large institutions are shifting their attention away from traditional mergers and instead acquiring assets from private equity owners. These transactions don’t trigger public concern. They don’t spark regulatory alarms. And they get done.

Over $15 billion worth of deals were completed in 2025 involving European banks buying private equity-backed businesses. That’s the highest annual total ever recorded, based on FT data. The direction of travel is becoming clear.

Why Private Equity Is Selling Now

Private equity firms need exits. The IPO market is cold, and that limits the usual routes for offloading portfolio companies. Strategic buyers—particularly well-capitalised banks—are becoming the preferred buyers.

In 2025, financial services accounted for about 20% of all private equity exits in Europe. That’s double the 10-year average, based on figures referenced by the Financial Times. The context matters: with capital locked up and limited paths to liquidity, selling to banks offers PE funds a clean exit.

Unlike institutional investors or IPO-bound strategies, banks bring immediate capital and strategic alignment. These are not distressed sales. They’re calculated, timing-based exits by private equity managers under pressure to return capital to LPs.

For Banks, a Strategic Fit

European banks aren’t just looking for growth. They’re looking for growth that doesn’t raise eyebrows.

Buying another bank often means consolidating branch networks, job redundancies, and overlapping regulatory authorities. This tends to raise political and public concern, especially in markets like France, Germany, and Spain.

Acquiring a specialist lender, asset manager, or consumer finance business from a private equity firm doesn’t come with the same baggage.

It’s a surgical move: clean, fast, and under the radar.

The deals aren’t always transformative, but they serve a purpose. They allow banks to diversify, scale capabilities, or enter niche markets without causing systemic tremors.

Key Transactions That Set the Tone

ABN Amro’s purchase of NIBC Bank stands as one of the most illustrative examples. The Dutch lender acquired the private equity-owned firm from Blackstone in a quiet deal that was completed with minimal resistance. The bank strengthened its position without triggering a national debate.

Other private equity-backed financial services firms are now widely expected to be in play. Evelyn Partners, a UK-based wealth manager, and Hamburg Commercial Bank, owned by a Cerberus-led investor group, are examples mentioned frequently in industry commentary.

While full confirmation of sale talks is not public, the market positioning of these firms suggests they are attractive to banks looking for scalable, revenue-generating bolt-ons.

Shifting Priorities in M&A Strategy

European bank M&A used to revolve around domestic or cross-border consolidation. That’s changed. Deals are now more surgical, more selective.

Acquisitions are often focused on high-return segments: asset management, SME lending, and consumer credit. These are businesses where integration can be managed efficiently, and political sensitivities are low.

This is not a wholesale shift in strategy. Banks are still exploring traditional mergers. But they are also acutely aware of how difficult those are to execute in the current climate.

Regulators have been cautious. Governments remain reluctant to approve mergers that could reduce competition or trigger layoffs. As a result, private equity-backed firms are becoming the path of least resistance.

Global Trends in Exit Activity

The European scenario reflects a wider refitting of the global private equity ecosystem. This suggests that funds are faced with long holding periods and pressing timelines, and the recycling rate of capital has slowed.

In the U.S., similar trends have emerged, with regional banks eyeing fintech and asset-light lenders previously held by buyout firms. But the political lens in Europe magnifies the effect. Deals that don’t involve public-listed banks sidestep complex conversations.

This is creating an M&A sub-sector focused entirely on “non-controversial” assets. Expect this to grow in 2026 and beyond.

What to Watch If You’re an Investor

If you’re tracking European banks, pay attention to their deal announcements. Look at who they’re buying and why.

Are they expanding in consumer finance? Are they bolstering wealth management? Are they entering markets through smaller, PE-backed assets?

These choices signal a lot about internal strategy, leadership outlook, and risk appetite. Not all acquisitions will deliver. Post-deal integration will remain a risk.

Look for evidence of clear synergies, cost control, and retained client bases. If those appear in results within 12–18 months post-acquisition, the strategy may be working.

What Comes Next

M&A volumes are still lagging their pre-pandemic levels. But there’s movement. Private equity firms want exits. Banks want growth. Both sides are incentivised to engage.

Expect more headline-light, impact-heavy transactions over the next year. The firms involved may not be household names. But the shifts they represent are worth your attention.

This isn’t just a financial tactic. It’s a directional signal for European banking strategy in an environment shaped by politics, regulation, and capital flows.

The next deal might not make front-page news. But it might reshape your portfolio.