Publicly listed asset managers witnessed strong revenue growth in 2024, but these gains were primarily due to capital market appreciation rather than organic asset inflows, which were basically flat for the median manager over the year, according to new survey released April 3 by asset manager consultant Casey Quirk, a Deloitte business.
According to a survey of 21 independent publicly traded asset managers with $24 trillion in total assets under management, in 2024, these firms saw 9% median management fee revenue growth. Alternative managers outperformed, with their fee-related earnings jumping by 19%.
Traditional managers saw a 9% increase in revenue year-over-year as the shift in revenue from public to private markets continued.
On the whole, assets under management rose 12% for the median firm, falling behind the S&P 500’s 25% growth over the same period.
The median traditional manager saw barely positive organic AUM growth of 0.1% over the period, “demonstrating a continued reliance on market appreciation to fuel asset and revenue growth,” Casey Quirk said in a news release about the survey.
Alternative asset managers also continued to outperform on fundraising, with the median firm realizing 1.4% organic growth over 2024.
Moreover, mergers and acquisitions activity in the asset management industry was flat in 2024 relative to the prior two years, with acquisition activity centered around firms extending their private markets business or other capabilities.
In 2024, firms continued to add employees “despite a continued focus on outsourcing significant parts of the middle and back office,” Casey Quirk noted.
In addition, increased spending on technology, legal/compliance and marketing all contributed to cost increases.
“We’ve seen many firms double down on pursuing retail clients,” said Kira Mikulecky, principal at Casey Quirk, in the news release. “To support these efforts, managers have ramped up their marketing spend and invested in optimizing their marketing technology.”
