The evolution of the management company and third-party providers
There are thousands of small asset management firms managing US$3-4 trillion in assets
The TOP 500 global asset management firms manage some US$81.2 trillion1 in assets worldwide but there are thousands of smaller asset management firms managing another US$3-4 trillion of assets, taking total global assets under management to just shy of US$85 trillion (source below). Smaller asset managers (in relative terms) manage assets in both regulated schemes such as UCITS or 40 Act funds, and semi-regulated funds such as hedge funds, private equity, and infrastructure funds. For decades, a large number of the latter alternative fund managers could manage their assets with relatively little scrutiny or regulation. The bigger, more established firms had in-built governance and oversight functions and for a while, at least, new entrants to the regulated market had to factor the costs of providing that governance framework (including capital requirements) into their start-up costs.
Performance magazine issue 26, May 2018
Performance is a triannual digest, dedicated to investment management professionals, which brings you the latest articles, news and market developments from Deloitte’s professionals and clients.