Overarching investing and positioning thesis

Atlas Merchant Capital is an international financial services investment firm with offices in New York and London. Atlas brings its deep operating and investing experience and extensive industry relationships to bear in all its efforts. Led by its co-founders, Bob Diamond and David Schamis, Atlas sees significant opportunity in the financial services sector.

Opportunities in Financial Services

Atlas believes that financial services is a compelling sector for investment based on:

  • The overall size of the market
  • The underinvestment of private capital in the sector
  • The continued undervaluation of financial services companies relative to historical prices and to other sectors

Stock Performance: Financials vs. Non-Financials

Stock Performance

As of August 2, 2019, Source: Bloomberg

Share of Select Industries in U.S. Private Equity and Public Markets

Share of Select Industries in U.S. Private Equity and Public Markets

As of year end 2018, Source: PitchBook

Investment Approach

  • Financial services specialists: By focusing on financial services, Atlas believes it can bring to bear its specialized abilities and industry relationships to source and execute proprietary transactions. Atlas understands that investments in related financial industries will complement one another’s strategy and operations.
  • Operating & technical expertise: Uniquely positioned within the financial services industry to offer deep and extensive operating and technical background which differentiates Atlas from its competitors. Atlas utilizes the industry expertise of its investment team, Operating Partners and Senior Advisors to identify and evaluate opportunities and then execute the business plans for the companies in which Atlas invests.
  • Partnership approach: Atlas believes its strongest results will come when Atlas works in partnership with portfolio company management, transaction intermediaries and investors. To its partners, Atlas offers a collaborative approach which we believe will give Atlas the ability to add meaningful value beyond just capital.
  • Designed for regulation: Atlas understands that in financial services, regulators serve a critical role in protecting consumers and economies. Atlas approaches each investment with regulators in mind, ensuring that Atlas prudently operates within appropriate guidelines on a global basis.
  • Prepared for uncertainty: Atlas seeks to protect its capital against potential stress events through appropriately structuring and pricing transactions. Atlas understands that to create long-term value, Atlas must first preserve its starting capital. Importantly, Atlas believes that only through maintaining appropriate liquidity and capital will its new acquisitions achieve the best results.

Regulatory Expertise

Atlas, a registered investment advisor with the Securities and Exchange Commission (“SEC”), understands that in financial services, regulators serve a critical role in protecting consumers and economies. Atlas approaches each investment with regulators in mind, ensuring that Atlas prudently operates within appropriate guidelines on a global basis. Regulatory bodies applicable to Atlas portfolio companies include:

  • Texas Department of Insurance
  • Banca d’Italia
  • Autorité de Contrôle Prudentiel et de Résolution
  • Autorité Fédérale de Surveillance des Marchés Financiers (FINMA)
  • Financial Conduct Authority
  • Financial Industry Regulatory Authority
  • Financial Conduct Authority
  • Prudential Regulation Authority
  • Financial Industry Regulatory Authority
  • Bank of Greece
  • European Central Bank
  • Bermuda Monetary Authority
  • Financial Industry Regulatory Authority
  • Connecticut Dept. of Insurance

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