PwC: One in Six Asset Managers to Vanish by 2027

Consolidation will lead to fewer players in the asset management industry, according to a PwC report, with one in six expected to disappear by 2027.

One out of six asset management companies, or 16 percent, are set to disappear by 2027, according to a report by PwC. This is driven by consolidation in the industry with the ten largest asset managers expected to control around half of all mutual fund assets worldwide by the same year, up from 42.5 percent in 2020.

Some 73 percent of asset managers are considering strategic consolidation with another player in the coming months to gain access to new market segments, build market share and mitigate risks.

Robo Advisors, Passives

Other noteworthy projections by 2027 include the rise of assets managed by robo advisors to $5.9 trillion, up from $2.5 trillion in 2022, and the fall of passive revenues to account for 6.4 percent of global revenues, down from 26.4 percent in 2022.

Overall, assets under management globally will rise at a compound annual growth rate of 5 percent to reach $147.3 trillion by 2027.

PwC’s 2023 global asset and wealth management report is based on the latest industry projections and a survey of 250 asset managers and 250 institutional investors.