Wealth Managers Bet on Private Assets, AI for Growth
Over the past five years, wealth managers have enjoyed robust growth, with global assets under management surging by 20%, from $132 trillion in 2019 to $159 trillion in 2024. Natixis Investment Managers’ 2025 Wealth Industry Survey, The Eve of Disruption reveals an even stronger appetite for expansion this year, with firms forecasting an average AUM increase of 13.7% in 2025.
Yet, amid geopolitical upheaval, economic volatility, and the fast pace of technological change, industry gatekeepers and analysts recognize that achieving these ambitious targets will be a complex challenge requiring strategic agility.
Research indicates that although 73% of respondents express optimism regarding their market outlook for 2025, the persistent uncertainty within the macroeconomic landscape remains a significant concern. Among the primary economic worries, new geopolitical tensions top the list, cited by 38%, with inflation—a close second at 37%—heightened by fears among 74% that Trump-era policies could spark its resurgence. Additionally, two-thirds (66%) anticipate just modest interest rate reductions in their domestic region moving forward.
Notwithstanding these apprehensions, 68% of analysts assert they will maintain their return projections for 2025 without adjustments. Wealth managers are taking proactive steps, devising strategies tailored to their operations, the broader market, and, above all, client portfolios, aiming to sustain performance outcomes despite the unpredictable economic climate.
With these factors in view, wealth managers are meticulously evaluating the potential impacts of geopolitical instability and ongoing inflation on the broader economic landscape. Half (50%) of those polled predict a soft economic landing for their region, with optimism most pronounced in Asia (68%) and the US (58%). Confidence wanes, however, to 46% in Europe and a mere 37% in the UK. Furthermore, 61% express concerns over the risk of stagflation taking hold in Europe.
Having observed the swift evolution of generative AI models, nearly eight out of 10 wealth managers (79%) believe AI could drive faster earnings growth over the next decade. In response, firms are eager to leverage this emerging technology across three critical domains: capitalizing on AI’s investment opportunities, integrating AI to refine their internal investment processes, and employing AI to optimize business operations and elevate client service experiences.
Nearly seven in 10 (69%) wealth managers assert that AI will improve the investment process by revealing previously obscured opportunities, while 62% view AI as an increasingly vital tool for assessing market risks. The transformative potential is so significant that 58% believe firms failing to adopt AI will risk becoming irrelevant in the industry.
Considering this, 58% report that their firms have already incorporated AI tools into their investment processes. The most prominent early adopters are concentrated in wealth management firms across Germany (72%), France (69%), and Switzerland (64%).
Cecile Mariani, head of global financial institutions, Natixis IM said: “Wealth managers face a wide range of challenges in 2025, educating their clients to the benefits of owning private investments, to finding the best ways to integrate AI into their investment and business processes. However, despite potential roadblocks, wealth managers are confident that they can harness potential disruptors to unlock new opportunities and live up to the AUM growth goals they need to hit in 2025.”
While technology holds the promise of transforming the industry, firms are grappling with the more pressing task of aligning with client investment preferences and performance goals. To meet these demands, wealth managers are diversifying their approach, utilizing a wider range of vehicles and asset classes.
Globally, portfolios currently consist of 88% public assets and 12% private assets, though this gap is expected to shrink as interest in private assets grows. Additionally, nearly half (48%) emphasize that satisfying client appetite for unlisted assets will be a pivotal element in their growth strategies.
Yet, meeting the demand for private asset allocation is not without its challenges. More than one in four (26%) wealth managers identify limited access to private assets as a risk to their operations. New product structures are alleviating some of this strain, with nearly two-thirds (66%) noting that retail-oriented private asset vehicles bolster diversification efforts.
The next hurdle lies in education, as 42% point out that clients’ grasp of liquidity issues can impede the integration of private assets. Nevertheless, illiquidity can benefit certain investors, with three-quarters (75%) of wealth managers worldwide highlighting that the extended horizon of retirement savings aligns well with the long-term nature of private asset investments.
Overall, 92% of respondents intend to either expand (50%) or sustain (42%) their private credit offerings, while 91% plan to either grow (50%) or preserve (41%) their private equity investments on their platforms. Few anticipate a shift in this trend, with 63% asserting that a substantial return gap persists between private and public markets. Moreover, 69% believe that, despite elevated valuations, private assets remain a compelling long-term investment option.
The survey gathered insights from 520 investment professionals overseeing investment platforms and client assets at top wealth management firms across 20 countries collectively managing $25.2 trillion.
