Asset management consolidation set to increase

Viewpoints
July 14, 2023
1 minutes
Authors:

Asset Management M&A activity has recently been on the rise, and it looks like there may be much more in the next few years. According to a recent research report from PwC, one in six asset management firms will no longer exist in 2027.

Some of the reasons for asset manager consolidation could include a desire for a more diverse platform, the increasing cost of operating in such a highly regulated space and the challenges of offering competitive products in multiple specialized distribution channels.

It might be that the future asset management landscape will mostly consist of ultra-large firms that compete for and at scale in multiple distribution channels and small, niche firms that seek to do just a few things really well.

If you are interested in exploring transactional opportunities, Ropes & Gray has an experienced, dedicated Asset Management M&A team that is well positioned to help clients navigate the coming changes to the asset management industry. 

Check out their recent client update here.