Private assets are the name of the game

One area where client preferences are becoming increasingly clear is in private markets.

Private markets are now viewed as being integral to strategic asset allocation, with projections indicating that alternatives will comprise over 20% of global assets under management by 2030.

This is leading to the creation of strategic partnerships with private markets firms – for example BlackRock's acquisition of HPS Investment Partners – as well as life insurance firms; a good example being M&G's partnership with Japanese life insurer, Dai-Ichi Life.

Strategic partnerships are critical for growth and innovation as asset managers seek to access new markets, diversify product offerings, and enhance their competitive edge. Deal origination capabilities are highlighted as a key differentiator in private markets. Firms with robust origination engines can access superior deal flow, benefiting both their own portfolios and those of their partners.

With US markets experiencing unique challenges, Europe is well positioned to attract capital, especially in areas like sustainable investing.

Regardless of political shifts, climate change remains a central consideration for portfolio construction. The next generation of investors will demand meaningful integration of sustainability factors, necessitating both risk management and opportunity identification in areas such as clean energy, carbon transition, and climate resilience.

The co-founder and group CEO of a leading wealth management firm said that the next generation of clients are seeking not just performance but purpose: "This will become a much more important part of what we do. So for us, future proofing isn't about predicting the future perfectly. It's about staying relevant in the face of continuous change."