Asset & Wealth Management Communications in 2025: A Deeper Dive
January 7, 2025
DLPR’s practice leaders shed light on the trends defining asset and wealth management in the new year, and what that means for how we’ll help these firms tell their stories.
The following provides an in-depth look at the challenges and opportunities, as identified by the heads of our institutional and retail asset management teams, along with insights into how we communicate about them.
Institutional and Alternative Asset Management
As competition across asset management continues to intensify, large and small managers alike will need to continue distinguishing themselves with strong performance, innovative strategies, and brand identities that reflect a firm’s intellectual capital. Evolving projections for interest rates, inflation, and the regulatory landscape will dictate investor appetite, but at a broad level, we are seeing continued demand for a range of investment strategies and product types.
Acquisitions of alternative asset managers, particularly in private credit, by large traditional managers have been a key theme, and we believe this trend will continue as firms aim to offer a broader range of asset classes to both institutional and individual investors. Simultaneously, established managers in private equity, private debt, venture capital, and hedge funds that remain independent are expected to enhance their wealth management and retail distribution capabilities to support continued growth and scaling
As many high-net-worth investors look to mimic institutional asset allocations, they are demanding access to alternative strategies. Reaching that investor segment, particularly for smaller managers, will require considerable effort to increase visibility and communicate effectively with a less sophisticated audience that relies on a broader range of financial information channels
Those who fail to connect with this audience may still find success in traditional institutional channels, though these are becoming increasingly competitive. In private markets fundraising specifically, while volumes may not reach all-time highs, we expect gradual improvement, particularly as transaction and capital markets activity increases.
– Zach Kouwe and Shree Dhond, Executive Vice Presidents
Retail Asset and Wealth Management
Flows from mutual funds to ETFs show no sign of slowing. In response, asset management firms have embraced this trend, successfully launching nearly 2,000 active ETFs over the past five years. This strategy has contributed to both asset retention and inflow generation. According to a recent ISS report, active ETFs are slated to deliver some of the best revenue gains over the next five years.
Asset managers serving intermediary and retail investors must effectively communicate their ability to be nimble and responsive to investor needs. This includes offering specific investment wrappers and strategies while showcasing their capacity to adapt to changing demands. As the industry matures and the Great Wealth Transfer unfolds, traditional managers must demonstrate an understanding of the next generation of investors. They need to present informed perspectives on topics that matter to these investors, such as cryptocurrency, AI, and sustainable investing, while also proving their willingness to adapt by providing transparent and tax-efficient investment vehicles in response to evolving demands.
Within wealth management, the Great Wealth Transfer is coinciding with an unprecedented level of advisors retiring, with nearly 40% of advisors planning to retire in the next five years. On top of that, private equity has been snapping up wealth advisory firms, leaving very few large and mid-sized firms “private and independent.”
Wealth managers have a unique opportunity to connect with the next generation of investors by showing they have a clear understanding of generational wealth transfer and advisor succession planning. In both cases, the key is demonstrating a plan to meet the needs of these investors and support them long-term. We can expect further consolidation, with smaller firms merging or disappearing, alongside a rise in advisory firms focused specifically on the next generation.
Established firms should also fare well, assuming they are able to communicate a compelling and relatable vision around independence and a focus on meeting the unique needs of the next generation.
– Stephanie Dressler, Executive Vice President