A German private equity firm is on course to close the year’s largest dedicated financial services fund in Europe after just 12 months on the road. The news comes as industry figures predict continuing dealfow in the sector, as financial institutions look to shrink balance sheets.

Augur Capital, a financial services focused private equity firm based in Germany, has "practically closed" its second buyout fund - Augur Capital II - after 12 months on the road, according to the firm's managing partner Gunther Skrzypek.