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Bailey McCann, Opalesque New York:

Private equity is continuing to invest in asset managers, but it's more than just GP stakes. Private equity investment in asset management soared to a three-year high in 2024 as deals targeting wealth managers combined with strategic acquisitions to drive transaction activity, according to new data from S&P Global Market Intelligence.

Private equity and venture capital firms invested $20.29 billion in asset management deals globally in 2024, an 89% increase over the prior-year total of $10.78 billion. The value of private equity investments in asset management is the highest it has been since 2021.

According to S&P Global Market Intelligence, the way private equity is investing in asset management is changing. Sponsors are looking for investment teams with differentiated strategies, wealth managers and other firms for GP stake deals. Analysts expect that focus will increase on investment teams with unique strategies.

Investors might also be looking for asset managers that operate within specific geographies. Many firms are pursuing national and international growth strategies and acquiring other firms in desirable locations is a faster way to add that scale.

CVC Capital Partners PLC's acquisition of the final 20% share in Glendower Capital LLC was one such high profile deal in 2024. CVC, a private equity and venture capital firm with $207 billion in assets under management, gained full control of the private equity se......................

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