The Asset Management Battlefield: A field report from the FT’s Future of Asset Management Europe 2025 (FOAM25)

Industry leaders at FOAM25 laid out their view of what Asset Management can expect next, including the following opportunities and threats:

• Disruption: The industry is grappling with disruption at every level – it is not business as usual. Technology, and AI in particular, is front of mind.  The consensus is that AI will drive efficiency gains and sharper decision-making – with better outcomes for clients.  Asset managers will need to decide where to deploy their humans – in other words, strategic deployment of human expertise where it adds genuine value alongside technology, will be essential.

   

• Relationships, relationships, relationships:  The battle that must be won is relationships.  Technology on its own is no longer a differentiator.  Clients are increasingly demanding hyper-personalisation – tailored interface, products, advice and service levels.  The quality of client relationships and bespoke service will carry the day or not.  Clients consider great service, solid advice and tech as standard.  Clients want that something extra – a relational strategic partnership.

   

• Private Capital Shift: The shift towards private capital reflects investor appetite – more is being allocated to private assets in search of higher yields and diversification. Embracing private capital requires asset managers to prioritise transparency and reporting (including on fees, valuations and performance) in order to promote confidence and integrity in decision-making. 

  There is also recognition that private assets lack the ease of benchmarking available in public markets.  Asset managers need to address investor desire for robust benchmarks to properly gauge success.  Liquidity too is a challenge.  Investors are accepting longer lock-ups in private assets, but are also pushing for solutions such as more sophisticated secondary markets.

   

• Public Markets and Executive Pay: Dame Julia Hoggett, chief executive of the London Stock Exchange, noted that UK boards have grown more forceful on CEO pay as they seek to ensure executives are paid competitive packages.  Public companies competing on a global basis for talent must be able to attract top talent and shareholders are backing remuneration committees who support their companies in that aim.  Pay structures should incentivise long-term value creation without alienating stakeholders.  Done right, compensation can align executives with clients and shareholders; done wrong, it becomes a flashpoint.

   

• Geopolitics: Geopolitics too, are shaping Asset Management strategies. One view is that the world is now tripolar – with the US, China, and Europe each forming a bloc. Different approaches from these power centres create opportunities and threats.

  The US is seen as leading in many “old tech” industries and adopting a more mercantilist, protectionist stance in certain areas – such as reshoring manufacturing.

  Meanwhile, China is a dominant force in “new tech”, including electric vehicles and solar panels. China’s push into green and high-tech sectors is backed by significant state investment and strategic long-term planning. China produces and exports the majority of the world’s EVs, solar panels, and battery storage units. This is not just industrial ambition – it is driven by necessity. China has limited domestic resources (like oil and gas), so investing in renewables and sustainable tech is a way to reduce reliance on imports and gain an edge. The result is that China is not only greening its own economy but also exerting influence over developing economies by financing and supplying infrastructure.

  Europe, for its part, forms the third bloc – focusing on regulation, sustainability and standards. Europe’s influence may be more about rules and market access than brute economic might, but it remains a key player, especially in neighbouring markets.

  Asset managers must navigate a fragmented world, where capital flows, supply chains and investment opportunities will be shaped by this US–China–Europe dynamic.

   

• Consolidation:  M&A is firmly on the Asset Management agenda. Received wisdom remains true – integrating two organisations is the hardest part of any acquisition or merger. Deal doers must plan integration meticulously – “spend a lot of time working out, in great detail, who is going to do what” – to avoid confusion and talent flight. Integration planning needs to cover everything from blending teams and IT systems to reconciling investment philosophies.

  M&A consolidation for scale and cost efficiency is anticipated to be less prominent – clients, unsurprisingly, are not convinced by the value of these drivers.  Instead, M&A is likely to be driven by client demand for new asset classes or services.  A bigger combined firm does not necessarily mean better service.  Clients know that the shrinking pool of asset managers could reduce choice and increase fees.  The increasing desire for hyper-personalisation also means some clients are concerned about combinations that could dilute the personal touch.  Scale for scale’s sake is no guarantee of success. Mergers must be executed with a clear strategic purpose and with rigorous integration planning and communication. Success will be measured by whether the merger delivers better outcomes for clients and improved growth, not by simply pointing to cost synergies.  Clients don’t buy big, they buy good.

   

FOAM25 confirmed that the Asset Management industry remains in rapid evolution. From AI and tech transforming investment processes, to the rise of private markets, shifting client expectations, geopolitical realignment, and ongoing M&A reshaping the competitive landscape.  Harnessing technology and global opportunities in service of better client outcomes is key to winning the relationship battle.

If you are interested in finding out more about how Burges Salmon LLP may be able to support your business in the Asset Management space, please contact AJ Venter.