Asset Managers Continue Pivot to Private Markets to Defend Economics: Casey Quirk Year-end 2024 Results
- Editor
- Apr 3
- 1 min read
Whats Happening:
Casey Quirk's survey of 21 publicly traded asset managers reveals strong revenue growth in 2024, primarily driven by market appreciation rather than organic inflows. Alternative managers outperformed traditional managers, with fee-related earnings rising 19% compared to 9% for traditional managers. Assets under management increased by 12% for the median firm, but organic growth remained low at 0.1% for traditional managers and 1.4% for alternative managers.
Key Moves:
Asset managers saw 9% median management fee revenue growth
Alternative managers outperformed with 19% fee-related earnings growth
Firms continued to add headcount and increase technology spending
By The Numbers:
12% increase in AUM for median firm
0.1% organic growth for median traditional manager
7% increase in operating expenses for median firm
Key Quotes:
"We've seen many firms double down on pursuing retail clients," said Kira Mikulecky, principal at Deloitte Consulting LLP.
"A return in pressure on fundamental economics has meant that managers, traditional and alternative alike, have sought resiliency both via capability expansion as well as finding more stable sources of revenue," said Anthony Skriba, manager in the Casey Quirk Knowledge Center at Deloitte Consulting LLP.
Bottom Line:
Asset managers are pivoting towards private markets and expanding capabilities to defend their economics in the face of pressure on fundamental economics. While revenue growth was strong in 2024, it was primarily driven by market appreciation rather than organic inflows, highlighting the need for firms to find more stable sources of revenue and pursue retail clients to drive growth.
Comments