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Laxman Pai, Opalesque Asia: Traditional publicly traded U.S. asset management firms were under pressure in 2022 as they faced revenue, profit, and AUM declines following a year of dramatically rising capital markets in 2021 that generated all-time revenue and profit highs, said a study.
The research from global asset management strategy consultant Casey Quirk, a Deloitte business, the median revenue at asset management firms in aggregate decreased by 4% in 2022 versus an increase of 20% in 2021.
According to Casey Quirk, the median assets under management, or AUM, declined by 16% compared with a rise of 14% the prior year, according to the analysis.
Organic growth was down 1% in 2022 as compared with a positive 3% in 2021 and profit declined by 6% versus an increase of 33% for the year earlier. Despite these challenges, operating margins remained healthy for the industry at 34% and revenues still surpassed 2020 levels at $63 billion.
Alternative asset managers, such as large private equity firms, continued to buck the trend. Alternatives firms' median revenue grew by 20% in 2022, AUM grew by 11%, and profits grew by 27% with strong capital raising and successful expansion in new and affiliated market segments.
On the other hand, traditional asset managers' median revenue fell by 9%, AUM declined by 17%, and profits fell by 12% driven by significant capital markets volatility for publicly traded equity and debt. Casey Quirk reviewed 17 listed tradit...................... To view our full article Click here
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