Private Assets to Be Half of Industry Revenues by 2030, PwC Says

Core Insights - Private markets are projected to generate over half of the money-management industry's revenues by 2030, indicating a shift towards private debt, equity, and infrastructure investments [1][3] - The asset- and wealth-management industry is expected to earn approximately $432 billion in revenue from private assets by 2030, surpassing revenues from traditional actively managed and passive investments [3] - The competition in private markets is intensifying, with traditional fund houses acquiring or partnering with private-market firms to enhance their positions [4] Industry Trends - The asset management industry is experiencing significant fee pressure, with nearly 60% of institutional investors likely to change managers for cost reasons, leading to anticipated declines in fees across both active and passive strategies [5] - Traditional cost-cutting measures have had limited success, and diversifying into new asset classes is adding complexity and costs [6] - Technology, particularly AI integration and automation, is seen as crucial for driving profits and transforming business models in the asset management industry by 2030 [6]