Core Insights - The global asset management industry is projected to grow from $139 trillion in 2024 to $200 trillion by 2030, with private equity becoming a significant revenue contributor, expected to account for over half of the industry's income within five years [1][2]. Group 1: Private Equity Market Growth - The private equity market is anticipated to generate $432 billion in revenue by 2030, surpassing the combined revenue of traditional active and passive investment products [1]. - Factors driving the rapid expansion of the private equity market include investor demand for higher returns, increased accessibility for retail investors, and a decline in public market IPOs [2][3]. Group 2: Traditional Asset Management Challenges - Despite the growth in asset size, the profitability of the asset management industry is under pressure, with 89% of firms experiencing profit challenges over the past five years [4]. - Profit margins have decreased by 19% since 2018 and are expected to decline by an additional 9% by 2030, primarily due to rising costs and the growth of low-fee passive funds [4]. - The rapid growth of passive funds is projected to increase from approximately $40 trillion to $70 trillion by 2030, further compressing overall fee levels in the industry [4]. Group 3: Strategic Shifts in the Industry - Companies are encouraged to innovate and restructure their business models to remain competitive, as the winners will be those that adapt quickly rather than those that simply accumulate assets [5].