Publicly traded asset managers saw big increases in revenue and AUM last year ... and yet those increases lagged those of the booming markets, according to new research from the folks at an asset management-focused consulting practice.

Kira Mikulecky (nee Dargery) Deloitte Consulting Principal

The median publicly traded asset manager saw AUM jump 12 percent in 2024, along with a 9-percent increase in fee revenue, Delottie's Casey Quirk team reveals today. (The report focuses on 21 public asset managers with a combined $24 trillion in AUM.) Meanwhile, a traditional 60-40 portfolio of stocks and bonds would've climbed 16 percent last year, and the S&P 500 grew by a whopping 25 percent.

On the brighter side for fundsters, though, the Casey Quirk team notes that the median asset manager's operating expenses rose even slower than revenues, at 7 percent. Thus, operating margins rose a bit, to a median of 31 percent. (Plenty of non-asset management businessfolk would probably be envious of such profitability!)

The Casey Quirk team also notes that fundsters increased headcount last year, even as they continued outsourcing more middle office and back office functions.

"We've seen many firms double down on pursuing retail clients," states Kira Mikulecky, principal at Deloitte Consulting. "To support these efforts, managers have ramped up their marketing spend and invested in optimizing their marketing technology."

"Anthony Skriba, manager in Deloitte Consulting's Casey Quirk Knowledge Center, highlights "a return in pressure on fundamental economics" hitting both traditional and alternative asset managers. Yet the Casey Quirk team notes that alts managers fared better than their traditional brethren in 2024, seeing more organic growth (a median of 1.4 percent versus a median of 0.1 percent) and higher fee-related earnings (FRE) growth (19 percent). 

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE