PwC predicts global alternative assets will increase to US$15.3 trillion by 2020. In the lead up to that, the global alternative asset management industry is expected to experience a transformation as alternative asset managers adapt their business and operations and make technology a top investment priority.
Rapid developments in the global economic environment have pushed asset management to the forefront of social and economic change. An important part of this change – the need for increased and sustainable long-term investment returns – has propelled the alternative asset classes to a more prominent role in the investment management industry.
To help alternative asset managers plan for the future, our report explores the likely changes in the alternative asset management industry landscape over the coming years, and identifies six key business imperatives for alternative asset managers.
- Choose Your Channels, addresses marketing and distribution by examining several of the fastest growing investor channels that are developing around the world.
- Build, Buy or Borrow, focuses on three growth strategies that alternative firms will pursue as they seek to broaden their asset classes, expand their product offerings and access new distribution channels.
- More Standardization, More Customization, addresses the simultaneous demands by investors for both customized solutions and standardized products such as liquid alternatives.
- From Institutional Quality to Industrial Strength. Increasingly, owners, investors and regulators are not just focused on the solutions provided by alternative firms but also on how they produce those solutions. Having institutionalized their businesses, alternative firms will now seek to industrialize by adding additional attributes such as agility, durability and scalability.
- The Right Resources in the Right Places, focuses on the organization design implications of this evolving industry. The way a firm has been organized and has operated in the past will not be the way it is organized and operates in the future.
- It’s Not About the Data. Data and data centricity are critical business issues in 2015 but by 2020, the data pipes have been laid and the leading firms will be focused on the analysis of data and data-informed decision making.
The report then examines how alternative fund managers can implement and prosper from each of these six imperatives.