Although not yet at the pace seen a few years ago, consolidation in the financial services industry, including the asset and wealth management businesses, has continued to show dynamism in the sector. The boom in alternative assets, in particular, has inspired companies to turn to the M&A market, as the desire to expand their investment capabilities in private markets has left its mark on asset managers.
During 2025, figures from McKinsey & Company show that transactions between asset and wealth managers reached 156, totaling $113 billion. This represents a 15% increase compared with 2024, but it is still a slower pace than recorded in the past, according to the report Global M&A Trends, signed by senior partners Jake Henry and Mieke Van Oostende.
According to the consulting firm’s analysis of the financial services industry, merger and acquisition activity in the world of asset and wealth management is being redirected toward businesses focused on investment capabilities.
This, they added, is especially true for deals that strengthen expertise in alternative assets. “Managers are targeting firms that give them an edge in private markets, real assets, or advanced technology,” the consultancy said on the matter.
From S&P Global Ratings they agree with the diagnosis, highlighting that the growing appetite for private credit strategies—a segment that is increasingly gaining ground in the alternatives space—and other alternative markets has led traditional managers to acquire additional investment capabilities.
Adding Capabilities
The objective, the rating agency outlined in a document on its outlook for the asset management sector in 2026, is to grow AUM, increase strategy diversification, and add publicly listed permanent capital. “The strategies being sought include private credit, infrastructure, and secondaries, among others,” a group of analysts from the firm wrote in their report.
In that sense, the rating agency highlighted a series of deals involving some well-known names from the world of traditional asset managers.
BlackRock, for example, announced in 2024 the purchase of the private credit firm HPS Investment Partners, the specialized house Global Infrastructure Partners, and the well-known data provider Preqin.
That same year, Janus Henderson Group announced the acquisition of Victory Park Capital Advisors, which invests in private credit. To strengthen this same asset class, Franklin Resources reported the purchase of Apera Asset Management the following year.
Another major buyer, as S&P Global Ratings listed, has been Affiliated Managers Group (AMG). During the past year, they indicated, the investment firm strengthened its capabilities in private equity with the purchase of Montefiore Investment; in infrastructure and energy transition, with Qualitas Energy; in logistics properties, with NorthBridge Partners; and in multi-strategy hedge investments, with the hedge fund Verition Fund Management.
One of the arguments in favor of this greater consolidation in the industry is related to the diversification of strategies within asset managers and the role it plays.
The Art of Diversifying
Some traditional managers are growing their alternatives offering, which could support revenue growth and visibility. Others are expanding their product offerings to offset outflows from strategies that are no longer in favor, according to S&P Global Ratings. In the opinion of its team of analysts, “more diversified firms are better positioned to retain their AUM as investment strategies become popular and unpopular.”
In addition, observers of the financial services sector point out that these asset classes bring with them a more favorable dynamic in corporate results.
As emphasized by the financial-sector specialist firm Crisil Coalition Greenwich, in a report corresponding to the first quarter of 2026, the mantra for asset managers during this year will be that “not all AUM is equal.”
In the past, they indicated, asset management firms have focused on capturing investor demand and boosting their own results through the launch of active ETFs and other public products, with fees that fall between index funds and actively managed vehicles. For the consultancy, this trend will continue in 2026, but more focused on alternatives, as it is more profitable for companies.
Although passive assets represent almost 30% of the asset management industry’s AUM, their figures show that they contribute only 7% of the sector’s revenue. By contrast, alternatives account for just 18% of AUM but generate 57% of the sector’s revenue. “These statistics clearly show that some dollars under management are worth much more than others when it comes to generating revenue,” the specialists at Crisil Coalition Greenwich said.
