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Laxman Pai, Opalesque Asia: Alternative asset managers had strong median revenue and profit growth from Q2 2022 to Q2 2023, while their traditional asset management counterparts saw negative numbers over the same period, a study revealed.
According to Casey Quirk's survey of 17 publicly traded asset managers with $19 trillion in assets under management, alternative asset managers had 14% median revenue growth and 17% median profit growth year-over-year from Q2 2022 to Q2 2023.
Meanwhile, traditional firms were in the red: They shrank by 3% for median revenue growth and 21% for median profit growth over the same period.
Overall, firms are still recovering from a challenging 2022. Second quarter 2023 results are lower versus Q2 2022 as public asset managers saw significant declines in the final two quarters of 2022. Median revenue growth was 0% and profit growth was down 15% over the previous year.
"We continue to see a strong divergence in the profitability and revenue growth of alternative firms versus their more traditional counterparts," said Amanda Nelson, principal at Casey Quirk. "This is a trend we've seen developing over the last several years and it's not letting up. It's contributing to the uptick in M&A activity we're witnessing with traditional firms buying private equity or private debt shops, lifting out teams, or seeking partnerships, for instance."
However, quarterly results were robust versus Q1 given strong capital marke...................... To view our full article Click here
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