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Laxman Pai, Opalesque Asia: A survey by consulting firm Casey Quirk revealed that publicly-traded asset managers of private markets funds - both private equity and private credit - are bringing in more money than last year-and more money than other asset management firms that are publicly traded.
The new research of 18 publicly listed asset management firms representing $21 trillion in assets under management (AUM) found that while these firms had record earnings in the period between the second quarter of 2023 through the second quarter of 2024, a wide disparity exists between the best- and worst-performing firms.
Asset managers saw 6% median revenue growth, 4% operating expense growth, and 1% compensation growth from Q2 2023 to Q2 2024. Managers' median margin grew by 3%, notably with profits expanding for all but three firms over the year - with this improvement, Q2 saw a median margin of 36% for firms in the sample.
"Managers across the industry have continued to see consistent growth, with revenue increases over the past year arriving at all-time highs," said Amanda Nelson, principal at Casey Quirk. "With broad financial stability came the opportunity for expansion and development, as we saw an increased pace in non-compensation spending among asset managers, in part reflecting increased acquisition activity and a growing investment in technology-driven in part by AI interest."
Meanwhile, publicly listed firms saw slightly more tep...................... To view our full article Click here
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