As the asset management industry is evolving, conventional growth is not as mainstream as it once was, according to McKinsey and Co.’s report Asset Management 2025: The great convergence. Alternative investments have become popularized as more investors are looking to diversify their portfolios and innovate their current product.
According to the report, the convergence of traditional and alternative asset management, along with the mainstreaming of active exchange traded funds (ETFs) and a recalibration toward local-for-local investing, has the potential to unleash between $6 trillion and $10.5 trillion in markets.
What was once a distinct separation between traditional and alternative asset management has become a combination of strategies, as clients are seeking integrated solutions that blend public and private exposures, according to McKinsey. Public-private strategies, evergreen products and public-private model portfolios are increasingly utilized to
