Race for private markets M&A: Traditional asset managers face list of hurdles in making tie-ups pay

Challenges to successful integration

Tie-ups between traditional or mostly long-only asset managers and private markets players have surged in recent years, driven by the declining profitability of public market investments and growing investor demand.

Conventional money managers are increasingly viewing building out their private markets capabilities as both a defensive and offensive strategy. Defensively, tapping into this area helps counteract pressures on their core public market franchises due to competition from passive investing.  Offensively, they enable firms to meet the increasing client demand for private market products, which typically command higher fees and lock up investors' capital for longer periods. Bain: Traditional asset managers must tap into private markets to avoid wipeout Expanding into asset classes s...