In an interview with S&P Global, White & Case partner Hyder Jumabhoy comments on increased consolidation amongst asset management companies as rising costs, falling fees and growing competition from passive investment firms presents challenges.
"As we see it, very few midsize manager business models can remain viable," said Jumabhoy. The M&A activity is polarizing at the top and bottom of the asset management market; the so-called barbell effect.
In 2019, most M&A deals were among smaller firms with just a few medium-sized transactions, according to data from White & Case’s Financial institutions M&A sector trends report.
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