Report: Consolidation, New Competition To Shake Up Asset Management

Jun 16 2014 | 9:44am ET

More than half of asset managers will be out of the business by 2030, according to a new report from KPMG.

The casualties will succumb to obsolescence or acquisition, according to the accounting firm. “We are on the verge of the biggest shakeup the industry has experienced, and the message to asset managers is clear: Adapt to change or your business won’t survive,” KPMG global head of asset investment management Tom Brown said.

“We expect to see mass consolidation in the industry and predict that within 15 years there will be half the number of players currently in the market.”

Among the changes shifting the ground under asset managers are technology, taxes, regulation, new geographies and increased competition from new entrants to the space. Indeed, some of the most popular companies with no current interest in asset management could be the biggest threat of all.

“Trusted brands that resonate and appeal to a more diverse client base, as well as the younger generation, may be able to build scale quickly,” Brown told Reuters. “We could see the Apples, Googles, or large retailers of the world becoming the next big powerhouses in investment management.”

Among the opportunities available to asset managers both established and otherwise are new, emerging markets, including China, India, Mexico and Nigeria, where the middle class is growing.


In Depth

Q&A: Jeff Eaton Talks Capital Raising, CalPERS And The Secondaries Market

Oct 14 2014 | 10:16am ET

Global placement agent Eaton Partners has raised close to $60 billion for some of...

Lifestyle

MacDonald-Korth Offers Insights Into Paintings Bought, Sold By Hedgies

Oct 7 2014 | 9:00am ET

Definitive and complete ratings require an in-person examination of an artwork,...

Guest Contributor

PAAMCO: European Equity Exposure - Challenging Year, But All is Not Lost

Oct 16 2014 | 4:12am ET

European equity hedge fund managers have had a tough time so far this year. The...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

October 2014 Cover

Deeply flawed risk benchmark

Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.