Key Takeaways
- • 73% of asset management CEOs express confidence in industry growth prospects, with 80% expressing confidence in their individual company performance, signaling broad optimism across the sector heading into 2026.
- • Nearly one-quarter of asset managers expect outsized earnings over the next three years, driving expectations for accelerated capital deployments and strategic M&A activity as valuation gaps narrow.
- • AI and digitalization investments are central to value creation strategy, with sector CEOs viewing artificial intelligence as a critical competitive advantage for funds, organizations, and portfolio companies, though cybersecurity risks remain a top concern.
- • Talent acquisition and organizational capability development are critical priorities, with CEOs actively upskilling workforces, updating workplace models, and forming new partnerships to enable AI adoption and maintain competitive positioning in a tight labor market.
- • ESG and sustainability metrics are increasingly integrated into financial value assessments, with asset managers and private equity leaders focusing on quantifying the cost-benefit of sustainability investments and aligning reporting with investor and regulatory expectations.
Summary
The KPMG 2024 Asset Management CEO Outlook, drawn from insights of 125 asset management chiefs as part of the broader 11th edition KPMG CEO Outlook survey of 1,350 global CEOs, reveals a sector experiencing a significant shift from cautious optimism to confident expansion. Three-quarters of asset management CEOs express confidence in their industry's growth prospects, while 80% demonstrate confidence in their individual company performance over the near term. This confidence reflects broader momentum in the asset management and private equity space, where leaders increasingly anticipate strong earnings growth and capital deployment opportunities.
The survey indicates that nearly a quarter of asset managers expect outsized earnings over the next three years—a notably bullish posture that carries direct implications for M&A activity and capital allocation strategies. As valuation gaps narrow and market conditions stabilize, sector leaders are positioning themselves to execute strategic acquisitions and disposals more aggressively. This represents a material shift in deployment expectations, with CEOs signaling readiness to move capital decisively once strategic opportunities align with valuation parameters.
Technology and artificial intelligence have emerged as the primary drivers of competitive differentiation and value creation. Asset managers and private equity leaders are clear-eyed about AI's potential to create competitive advantages across fund management, organizational operations, and portfolio company performance. The vast majority of surveyed CEOs express confidence in their ability to translate these technology investments into tangible value uplift for their organizations and stakeholders. However, this AI-centric strategy carries cybersecurity implications, with data protection and cyber risk remaining top-tier organizational concerns as firms expand digital infrastructure and AI deployment.
Organizational capability development and talent retention form the operational backbone of these growth strategies. Despite fierce competition for skilled professionals, CEOs are taking proactive measures including workforce upskilling initiatives, updated workplace flexibility models, and strategic partnerships designed to accelerate AI adoption and retraining. This talent-focused approach signals recognition that sustained competitive advantage depends on human capital as much as technology infrastructure.
Finally, sustainability and ESG initiatives have transitioned from compliance obligations to value-creation components. Asset managers are increasingly focused on quantifying the financial impact of their sustainability investments, assessing both costs and returns while ensuring reporting alignment with investor expectations and regulatory requirements. This integration of ESG into the core value equation reflects a maturation in how the sector views long-term portfolio performance and stakeholder accountability.
The survey indicates that nearly a quarter of asset managers expect outsized earnings over the next three years—a notably bullish posture that carries direct implications for M&A activity and capital allocation strategies. As valuation gaps narrow and market conditions stabilize, sector leaders are positioning themselves to execute strategic acquisitions and disposals more aggressively. This represents a material shift in deployment expectations, with CEOs signaling readiness to move capital decisively once strategic opportunities align with valuation parameters.
Technology and artificial intelligence have emerged as the primary drivers of competitive differentiation and value creation. Asset managers and private equity leaders are clear-eyed about AI's potential to create competitive advantages across fund management, organizational operations, and portfolio company performance. The vast majority of surveyed CEOs express confidence in their ability to translate these technology investments into tangible value uplift for their organizations and stakeholders. However, this AI-centric strategy carries cybersecurity implications, with data protection and cyber risk remaining top-tier organizational concerns as firms expand digital infrastructure and AI deployment.
Organizational capability development and talent retention form the operational backbone of these growth strategies. Despite fierce competition for skilled professionals, CEOs are taking proactive measures including workforce upskilling initiatives, updated workplace flexibility models, and strategic partnerships designed to accelerate AI adoption and retraining. This talent-focused approach signals recognition that sustained competitive advantage depends on human capital as much as technology infrastructure.
Finally, sustainability and ESG initiatives have transitioned from compliance obligations to value-creation components. Asset managers are increasingly focused on quantifying the financial impact of their sustainability investments, assessing both costs and returns while ensuring reporting alignment with investor expectations and regulatory requirements. This integration of ESG into the core value equation reflects a maturation in how the sector views long-term portfolio performance and stakeholder accountability.
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