Financial Services (FS)

Brokers & Asset Management

Deals Activity: High

Restructuring Activity: High

Market volatility creates opportunities across the sector.

Deals activity in Brokers & Asset Management

  1. 1. The number of deals in the sector has been growing steadily over the past few years.
  2. 2. Ongoing economic volatility looks likely to drive further deal activity as brokers and asset managers seek to strengthen market positions through M&A.

Restructuring activity in Brokers & Asset Management

Active management continues to come under pressure as funds seek to keep up with market performance.

The uptick in restructuring activity is indicative of certain asset classes, such as crypto, seeing unfavourable patterns of volatility and internal control deficiencies, which in turn has led to a number of insolvency appointments (e.g., FTX, BlockFi).

A renewed focus in ESG investing, with fund managers requiring greater data transparency coverage in order to meet new industry requirements, is shifting the strategic aims of how funds should be allocating capital efficiently across their portfolios.

Brokers & Asset Management

Record high savings rates fuelled by the pandemic have been a boon to the sector. However, renewed heightened economic uncertainty means asset managers will need to be agile to continue delivering value for clients.

Brokers and asset managers are facing several sector-specific challenges going forward:

Rise of passive investing

There has been significant growth in the popularity of passive investing – often appearing to offer similar returns to investors as active fund management while reducing operating costs. In this more commoditised environment, fees and innovative features are of growing influence for consumers.

Continued downward pressure on fees

Businesses unable to cut their cost base and transition smoothly to new technologies will struggle as new fintech players continue placing downward pressure on fees.

Regulatory scrutiny

Regulatory bodies continue to scrutinise the operating practices and funding requirements of brokers and asset managers.

“Fad” investing

New asset classes and investment types, such as cryptocurrencies and meme-stocks, continue to attract significant media attention and have heavily impacted even traditional fund managers.

Find Your Expert

Ed Boyle and Nick Smith are joint Sector Leaders at Interpath for FS overall, supported by an experienced senior team. This team tracks four key sub-sectors including the Brokers & Asset Management segment. As part of the FS expert team Rob Spence leads our approach to Brokers & Asset Management nationally.

Our senior team

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