The private equity has changed over the last decade. Sector specialization has become intense and operational excellence initiatives are now table stakes, says Chip Schorr, a senior managing director with One Equity Partners.
The holding company structure makes sense for large banks with complex business models and small banks looking to bulk up through acquisitions. But for a large swath of banks in the middle, the benefits are harder to spot.
The deal for PayPal’s consumer loan portfolio will make Synchrony a bigger player in e-commerce. And the agreement helps the Silicon Valley payments giant achieve its goal of reducing its exposure to the credit cycle.