One in six asset managers could disappear over the next four years because of a mix of market volatility, high interest rates and pressure on fees.
According to a PwC survey of 500 asset managers and institutional investors, 16% of existing asset and wealth managers will go out of business or be bought out by bigger groups by 2027.
The global survey also found almost three-quarters of asset managers are considering acquiring or merging with a competitor as business models come under pressure in a tough market environment.
The sum managed by asset managers fell by 10% between 2021 and 2022 from a high of $127.5tn (£98.1tn) to $115.1tn.
Brookfield Asset Management, which manages $834bn in assets, predicted in May that the challenging economic environment will force asset managers to consolidate to “up to 10 leading industry players”.
