|
Laxman Pai, Opalesque Asia: Global asset managers are enjoying a record rebound, but earnings aren't keeping up with rising markets, according to new research by McKinsey.
Industry assets under management hit $147 trillion by June 2025, up from $135 trillion last year-the biggest single-year jump of the decade. Approximately 70% of the increase was attributed to market gains, with the remainder resulting from net inflows.
Margins, however, remain squeezed as costs climb and fee pressure intensifies, particularly in traditional active equity funds.
The sector's defining shift is the "great convergence" of traditional and alternative investing. Private capital managers are pushing deeper into wealth, pensions, and insurance, while new structures-semi-liquid vehicles, evergreen funds, and active ETFs-are blurring boundaries between public and private markets. Analysts estimate the shifts could put $6-10.5 trillion of assets "in motion" over the next five years.
Private markets remain sluggish. Fundraising fell back to 2017 levels at $1.1 trillion in 2024, dragged by weak private equity and real estate exits. Private credit and infrastructure held firmer, while private wealth and secondaries have become bright spots, with inflows helping offset the fundraising gap.
Regionally, Asia-Pacific leads with 4.2% growth, while EMEA is on track for its best year in over a decade at 2.6%. The Americas lag at 1.2%, as U.S. open-ended fund flows dropped 22% in the...................... To view our full article Click here
|
RSS
