Emerging Asset Manager Survey Listed Investments - April 2021

Emerging Asset Manager consolidation - challenges

The biggest challenge facing consolidation are job losses, the fact that a high percentage of mergers actually fail and the managing of personalities is not an easy task.

Change management can allow for zero job losses during the process of consolidation but will require egos to be checked at the door – certainly easier said than done.

Leaders require humility and vision to lead their teams through change. Having a talented team may be to the firms advantage, but unless these can be harnessed to work collectively, it is a wasted opportunity.

Getting big egos to work together may be more art than science, smart people enjoy proving how much smarter they are than others. Teams need to use this ego to their advantage.

Perhaps a solution lies with incentivising smart consolidation where larger pension funds encourage conversations around consolidation between managers and dangle the “carrot” of assets to be managed should asset managers successfully come together.

We believe consolidation as a clear way for emerging asset managers to grow their businesses to sustainability and to higher levels of competitiveness among the incumbent large asset managers.

Thank you for your feedback… we are always excited to hear from you.