The financial crisis and the equity market downturn have added momentum to changes that are altering the structure of the asset management industry.
In a new report, Structural Changes in the European Asset Management Industry: The Rise of the Multi-Boutique Model, Celent finds that multi-boutique structures have emerged as an important operating model in the European asset management industry.
Around 28 per cent of asset managers have already adopted the model, and more are expected to do so.
Multi-boutique asset managers in Europe currently have average assets under management of EUR150bn, compared to large asset managers’ (integrated producers’) average AUM of EUR300bn. However, the AUM of multi-boutique asset managers is expected to grow faster.
"The industry is moving towards greater consolidation. Smaller players have been hit hard by the financial crisis," says Muralidhar Dasar, Celent analyst and co-author of the report. "In such a scenario, the multi-boutique model is even more relevant, as it helps create an entrepreneurial culture within investment teams and puts them in charge of making investment decisions, coupled with the backing of a large company which provides all auxiliary functions."
"Regulation is going to be crucial for asset management and the multi-boutiques," adds Anshuman Jaswal, Celent senior analyst and co-author of the report. "If it becomes tougher, multi-boutiques might suffer, and there might be further upheaval in the industry."