Fund Mergers Set to Boost Private‑Market Assets by 12% Annually

A wave of mergers and acquisitions among private‑market funds is expected to raise assets under management by roughly 12% per year over the next five years, outpacing the projected 8% growth in public‑market assets.

Oliver Wyman’s study projects the value of private‑market M&A to climb from about $13 billion in 2023 to $27.2 billion by 2025 – a 45% increase in two years. The report cites scale as the primary driver, allowing firms to attract more capital, talent and diversify portfolios, while also improving investment evaluation as credit conditions tighten. “Scale is essential to capture more capital and attract talent,” said Martín Sánchez, partner in Private Capital at Oliver Wyman.