In their recent report on the global asset management industry, “The Tide has Turned,” BCG reiterates how the asset management industry can no longer coast on old business models. Market performance has been responsible for 90% of the industry’s revenue growth for nearly two decades. But in 2022, with the collapse of a built-in bull market supporting revenue growth, global assets under management fell by 10 percent to $98 trillion. Coupled with the continuing business pressures of fee compression, rising costs, and technological change, BCG suggests managers transform their organization by focusing on the three Ps:
- Private Markets – Enter the alternatives space which has high-growth opportunities.
- Personalization – Implement technologies to personalize client experiences, opening the door to customized products.
- Profitability – Optimize costs rather than just cut expenses.
Private Markets for as a bright spot for our industry:
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