Monday, 24 November 2025
Global fund managers could oversee close to $200tn in assets by the end of the decade, according to new industry forecasts, pointing to a period of steady expansion driven by rising household wealth, pension inflows and renewed interest in long-term investment strategies.
The outlook, based on a large international survey of asset managers and institutional investors, suggests that private market strategies — including private equity, private credit, infrastructure and real assets — are set to play a more influential role in shaping how firms earn their income. Although these strategies represent a smaller share of overall assets, their fee structures mean they already deliver a significant portion of managers’ revenue. Respondents expect this contribution to continue increasing over the next five years, potentially overtaking revenues from traditional public-market products.
The predicted rise in global assets reflects both expected market growth and continued expansion in retirement savings across North America, Europe and Asia. Fast-growing economies in the Asia-Pacific region are seen as particularly important, with local reforms and a growing middle class driving demand for professionally managed investment products.
The revenue picture is more complex. While overall assets are projected to rise, margins have been under pressure for several years due to competition, higher operating costs and the need for substantial investment in technology. Many executives surveyed expect profitability per unit of assets to continue declining, even as top-line assets grow. This is pushing managers to look for ways to streamline operations, adopt new digital tools and pursue partnerships with fintech firms.
Private markets remain a central focus. Investors in the survey indicated plans to increase allocations to non-listed assets, attracted by the potential for diversification and inflation protection. Regulatory changes in several regions are also widening access to these strategies for wealth clients, creating new distribution channels for alternative investment products.
The rapid rise of data-driven tools — from AI-enhanced research to tokenised fund structures — is expected to reshape how managers operate and how investors access private assets. Survey participants noted that firms that fail to build strong technological capabilities risk losing relevance, regardless of size.
Despite the positive long-term outlook, industry consolidation is expected to continue. A growing number of smaller or specialised firms may struggle to keep up with the investment needed for regulatory compliance, technology and product development, leading to further mergers, acquisitions or exits.
If the projections hold, the global fund industry will enter the 2030s considerably larger and more diverse than it is today, but also more competitive. The firms that benefit most are likely to be those that combine scale with technological sophistication and a strong position in private markets — a combination increasingly seen as essential for growth in the next decade.
Source: PWC
