Global Asset Management AUM Surges 12% to $128T in 2024
Global assets under management in the asset management industry rose 12% in 2024, reaching $128 trillion, as reported in Boston Consulting Group’s 2025 global asset management report, “From Recovery to Reinvention.”
Market performance drove 70% of the industry’s $58 billion revenue growth, with net inflows contributing 30%. Revenue growth was tempered by managers shifting to lower-cost products and ongoing fee compression.
Investor preferences continued to favor passive funds, with $1.6 trillion in inflows in 2024, while actively managed funds saw $100 billion in outflows. This trend underscores the growing demand for cost-effective, index-based investment options.
Consolidation is reshaping the asset management landscape, with firms pursuing mergers and acquisitions to expand geographically and diversify product offerings. Notable 2024 acquisitions include BlackRock’s purchases of HPS Investment Partners ($148 billion AUM) and Global Infrastructure Partners ($170 billion AUM), strengthening its alternative investments portfolio.
BCG notes that firms with less than $300 billion in AUM benefit from cost efficiencies as they grow. However, beyond $500 billion, operational complexities arise as firms expand into new asset classes and client segments, requiring careful management to maintain profitability.
“Because no one-size-fits-all approach is available, many asset managers will need to consider enhancing their scale and scope through strategic partnerships or M&A to stay relevant,” the report stated. “The consolidation we are seeing tends to revolve around strategies for broadening product offerings, expanding global presence, building technology capabilities, securing more permanent capital, and increasing proximity to clients.”
