Private markets are on track to generate more than half of the global asset- and wealth-management industry’s revenues by 2030, reflecting intensifying competition among firms to grow in private debt, equity, and infrastructure, according to a PwC report released Monday. The consultancy surveyed 300 global firms and investors, finding that the industry could earn around $432 billion from private assets in 2030, exceeding revenue from both traditional actively managed investments and passive products. In 2024, private assets already accounted for 44% of total revenue, signaling a rapid shift in the sector’s focus.
The report highlights that the winners in this evolving landscape will not necessarily be the firms that gather the most assets, but those that adapt most quickly. “The winners won’t be those who gather the most assets, but those who rewire the fastest,” said Albertha Charles, global asset and wealth management leader at PwC UK. This urgency has spurred established fund houses, including Franklin Resources Inc., Invesco Ltd., and State Street Corp., to acquire or partner with private-market specialists to strengthen their foothold. BlackRock Inc. alone has invested more than $25 billion since early 2024 to expand in private credit and infrastructure, seeking to compete with major players such as Blackstone Inc., Apollo Global Management Inc., and Ares Management Corp.
While private markets are growing, the broader asset-management industry continues to face pressure on fees for traditional stock, bond, money-market, and multi-asset funds. Nearly 60% of institutional investors surveyed by PwC indicated they were likely or very likely to replace a manager solely for cost reasons. The report notes that traditional cost-cutting measures have had limited effect, as diversifying into new asset classes and expanding into new markets introduces additional complexity and expenses.
Looking ahead, technology is expected to play a key role in driving profitability despite narrowing margins. PwC highlighted AI integration and automation as critical initiatives for asset managers aiming to future-proof their business models. Firms that embrace these tools are more likely to navigate the challenges of declining fees and rising costs while capturing growth in private markets, which are increasingly seen as the engine of the industry’s next decade of expansion.
