Private markets to account for 39% of asset management revenue by 2030: Morgan Stanley-Oliver Wyman

New Delhi [India], October 19 (ANI): Private markets are expected to generate 39 per cent of global asset management industry revenue by 2030 despite accounting for only 15 per cent of assets under management (AUM), as revenue growth increasingly shifts towards specialised investment products, according to a joint research report by Morgan Stanley and Oliver Wyman.
The report said the changing revenue mix would make product selection increasingly important for asset managers seeking to outperform the industry.
“AUM is not the measure of success,” the report said, noting that global asset management revenues are expected to grow at 7 per cent annually through 2030, compared with 9 per cent growth in AUM. Average fees are projected to decline from around 35 basis points to 32 basis points over the period.
The report said the industry would continue to expand, but higher assets would not necessarily translate into proportionate revenue growth or greater profitability.
Global managed AUM is projected to rise from USD 159 trillion in 2025 to around USD 247 trillion by 2030. However, roughly three-quarters of the projected increase is expected to come from market appreciation, while net new investor money would contribute a smaller share.
Private markets, meanwhile, are expected to benefit from changing investor demand, with incremental capital increasingly coming from insurers and wealth investors. Asset managers will need to develop investment products and structures suited to their different liquidity, regulatory and servicing requirements, the report said.
Private markets assets under management are projected to reach USD 37 trillion by 2030, up from around USD 22 trillion in 2025. The report expects growth to be concentrated in private equity, infrastructure and selected private debt strategies.
Retail and wealth management channels are also expected to become more important to the segment. These investors are projected to contribute around 60 per cent of the net new investor capital flowing into private markets through 2030, despite accounting for about 25 per cent of current assets under management.
The report said asset managers would need to focus on the products, clients and capabilities that can generate stronger growth as competition intensifies and fees come under pressure.
It also highlighted artificial intelligence as a potential source of efficiency gains, saying firms that build reusable, company-wide AI capabilities could improve their cost-income ratios by up to 15 percentage points by 2030. (ANI)