Private equity investment in asset managers hits more than 5-year high

Global private equity-backed investments in asset management companies reached $27.57 billion in 2025, up 26.4% from 2024 and marking the highest level since at least 2020, according to S&P Global Market Intelligence data. Compared to 2020, the aggregate transaction value has increased by approximately 340%.

Consolidation of the fragmented industry is attracting private equity, which sees opportunities in executing small deals at lower multiples, packaging them together and selling them at higher multiples, Richard Jones, a partner at White & Case LLP in London, said in an interview.

There are many small managers out there, according to Jones. "A lot of the [private equity] deals that have been done have been kind of buy and build models."

The highest quarterly aggregate transaction value for 2025 was in the fourth quarter, reaching $11.64 billion — up 62.6% from the previous quarter and 426.7% year over year.

Building, expanding platforms

Platform building is the dominant private equity strategy in the asset management industry, especially as private markets become more accessible to retail investors, Ju-Hon Kwek, senior partner at McKinsey & Co. Inc., said in an interview.

Traditional asset managers also tend to have limited capabilities that private equity can reshape and refine.

"In active mutual funds, for example, it's not exactly the area with the highest client demand. Asset managers and their [private equity] owners are trying to reposition those platforms in favor of where client demand is," Kwek said.

Henri Torbey, partner at McKinsey & Co., added that asset managers increasingly aim to expand into wealth management by acquiring platforms with established distribution channels, a trend previously observed in the insurance industry.

A deal reflecting this trend is Madison Dearborn Partners LLC's acquisition of Wealthspire Advisors LLC, Fiducient Advisors LLC, Newport Private Wealth Inc. and Ground Control Business Management LLC to form institutional advisory platform Wealthspire Institutional.

Europe records largest transaction value

Europe led all regions in total private equity investment in the asset management industry, with $13.48 billion.

Five of the top 10 largest asset management deals of the year involving private equity were in the US and Canada. However, the largest transaction was in Europe, where UK-headquartered Janus Henderson Group PLC agreed to be acquired by an investor group comprising Trian Fund Management LP, General Catalyst Group Management LLC, Qatar Investment Authority and Sun Hung Kai & Co. Ltd. in a transaction valued at $6.10 billion.

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Banks as buyers

Hyder Jumabhoy, a partner at White & Case in London, said that after building an asset management platform, a private equity firm is more likely to find a buyer, particularly among European banks.

There is a "tremendous amount of M&A firepower" existing within the top 20 European banks, which have accumulated approximately €600 billion in excess capital over the last three years, Jumabhoy said in an interview.

The ability for European banks to purchase asset and wealth management assets once they have reached a certain scale and size is now present, according to Jumabhoy.