Will the biggest AM players crowd out all others?
Myth:
The asset management industry is consolidating so fast that only a few giant firms will dominate (i.e., biggest players will crowd out all others).
Lambqr.com analyzed data from 1,441 asset managers to see if the 'winner takes it all' myth holds true – here’s what we uncovered.
Reality:
Industry Remains Highly Fragmented
Despite some consolidation, the asset management industry is still highly fragmented, with thousands of firms competing for market share.
Fragmentation in Alternatives
Even in alternatives, the trend has been toward more fragmentation, not less. Small and mid-sized firms are thriving alongside the largest players.
Scale Alone Doesn't Guarantee Profitability
Larger AuM often correlate with lower fee margins, meaning bigger firms may not always see higher profitability compared to smaller ones.
