What is Lexus financial?
A company named Lexus Financial is the latest name to enter the automotive finance world.
The company is run by veteran financial adviser and former Goldman Sachs senior executive Matthew O’Connell, who recently returned to his former role as a managing director of global financial services firm Axa.
As part of Axa’s $1.5 billion investment in Lexus, the investment group is also investing in a number of other automotive finance firms.
While Lexus will still have to continue to pay its financial advisers, O’Donnell said the firm is looking to increase its presence in the financial sector.
“We’ve got a really strong track record in this sector and we’re hoping to add another big name to the mix,” he said.
“This is the next step in Lexis’ evolution.
It’s a really exciting time for us.”
O’Connell has been at Axa for nearly 10 years and helped lead its financial services division.
In recent months, Axa has also invested in financial services firms including Morgan Stanley, HSBC, Credit Suisse, Barclays, Credit Agricole and JP Morgan.
In its most recent annual report, Axas financial services group said the group’s focus on financial services was “driven by its strong focus on technology, including financial technology, which is increasingly becoming the new mainstream in finance”.
The financial industry is expected to account for up to one-third of the company’s total revenues in 2018.
Axas, which has a global presence, has already invested in some of the world’s most prestigious financial institutions including UBS, Morgan Stanley and Barclays.