Asset Managers Continue Pivot to Private Markets to Defend Economics: Casey Quirk Year-end 2024 Results

NEW YORK and STAMFORD, Conn., April 03, 2025 — According to new research from global asset management strategy consultant Casey Quirk, a Deloitte business, publicly listed asset managers continued to acquire and partner with other asset managers, including private markets firms, in 2024 as they sought to defend fees and grow assets under management.

Though publicly listed asset managers surveyed by Casey Quirk saw strong revenue growth from Q4 2023 to Q4 2024, these gains were primarily due to capital market appreciation rather than organic asset inflows, which were 0.1% for the median manager over the year. According to Casey Quirk’s survey of 21 independent publicly traded asset managers with $24 trillion in assets under management (AUM), from 2023-2024 year-over-year, asset managers experienced the following trends:

• Nine percent median management fee revenue growth
  • Alternative managers outperformed, with fee-related earnings (FRE) rising 19%.
  • Traditional managers saw a 9% increase in revenues YoY as the shift in revenue from public to private markets continues.
• Assets under management (AUM) were up 12% for the median firm, lagging the S&P’s 25% growth over the same period and a 16% increase in a portfolio of 60% stocks and 40% bonds. The median traditional manager saw barely positive organic growth of 0.1% over the period, demonstrating a continued reliance on market appreciation to fuel asset and revenue growth.
  • Alternative asset managers continued to outperform on fundraising, with the median firm realizing 1.4% organic growth.
• Operating expenses increased by 7% for the median firm, with non-compensation expenses ahead of compensation growth — levels of divergence have, however, been steadily decreasing when looking at quarterly results, with non-compensation spend growth gradually slowing from highs seen in 2022 and 2023. 
• The median firm saw slight margin expansion, although at an individual firm level many were steady YoY as a result of highly persistent cost increases.

2024 saw many firms undertake significant platform expansion. Industry M&A was flat in 2024 relative to the two years prior, with acquisition activity centered around firms extending private markets or other capabilities. Alternative firms also continued their search for sources of permanent, long-term capital, in addition to extending the number of capabilities they offer in the market. Deal activity among alternative managers also increased considerably vs. 2023, further reflecting strong revenue growth for the cohort.

In 2024, firms continued to add headcount despite a continued focus on outsourcing significant parts of the middle and back office. 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 Deloitte Consulting LLP. “To support these efforts, managers have ramped up their marketing spend and invested in optimizing their marketing technology.”

The dispersion between traditional and alternative managers also continued, with the benefits of scale being clear: In both the traditional and alternative cohorts, operating margins are highest (>37%) where firms have substantial concentrations of AUM in core asset classes (typically >$200bn). Margins remained under pressure due to increasing costs, with the median only increasing slightly (1.2% YoY) to an operating margin of 31%.

“A return in pressure on fundamental economics has meant that managers, traditional and alternative alike, have sought resiliency both via capability expansion as well as finding more stable sources of revenue,” said Anthony Skriba, manager in the Casey Quirk Knowledge Center at Deloitte Consulting LLP. “A focus on recurring streams of revenue has even led to changes in how firms incentivize and operate.”

Quarter over quarter trends:

Surveyed managers also saw positive results from Q3 2024 to Q4 2024, with the median manager experiencing:

• A 5% increase in revenue, with limited dispersion between traditional and alternative managers.
• A 6% rise in operating expenses, split nearly evenly between compensation and non-compensation expenses.
• A tepid but positive organic growth rate of 0.3%.

Casey Quirk, a business of Deloitte Consulting LLP, is a leading management consultancy specializing in asset management. Established in 2002 and acquired by Deloitte in 2016, Casey Quirk has advised many of the world's largest asset managers, including eight of the top 10. The firm provides strategic guidance on business reviews, investment positioning, market opportunity evaluations, organizational design, ownership structuring, and transaction due diligence.

For more information, visit www.caseyquirk.com.