Funds Congress Highlights

• Moderator: Mary Ruane, Partner, PwC
• Chris Blake, Head of Business Development, Coller Capital
• Joe Davidson, Managing Partner, Fulcrum Asset Management
• Carmel Jordan, Global COO, Mercer Investments
• Pars Purewal, Chairman/NED, Royal London Asset Management

This panel explored how asset managers are translating industry challenges into strategic action, covering consolidation, transformation, technology, product innovation, investor expectations, and talent retention.

Alternative asset consolidation parallels public markets: The alternative
asset management space is experiencing consolidation reminiscent of public markets in the 1990s and 2000s, with the top 10 general partners raising over 50 per cent of capital globally. Limited partners are writing larger cheques to fewer managers and eliminating underperformers, with approximately 25 per cent of general partners having not raised a fund in over seven years.

Platform advantages and deployment capabilities: Multi-product platforms
attract concentrated capital from limited partners seeking to deploy across
buyout, credit, and infrastructure within single relationships. However, scale alone does not guarantee success; focused managers with deep sector
expertise delivering top-tier returns remain durably attractive.

Continuous transformation as industry norm: Transformation is an ongoing constant rather than discrete events. One major institution grew from 100 billion to 700 billion pounds on an integrated global platform, with over 50 per cent of new business now from non-pension segments.

Captive-to-third-party evolution: Royal London Asset Management’s
transformation from captive house to over 200 billion pounds under
management, including 80 billion pounds third-party assets, required
sustained performance, patient parent company investment, and selective
focus.

Technology infrastructure ownership advantages: Firms that build rather
than buy technology infrastructure gain significant advantages, particularly
for agentic AI. Integrated systems eliminate interface breakdowns where 95 per cent of effort typically concentrates. Operations and fund accounting represent particularly promising AI development areas.

Data and integration investment imperative: Accelerated investment in
technology, data, and tools is essential. AI capabilities are being deployed to free people from routine tasks, though off-the-shelf tools require substantial upfront investment to integrate and clean data to appropriate standards.

AI market misunderstanding risks: Market volatility from AI
misunderstanding represents significant concern, illustrated by RELX’s share price declining 15 per cent following a misinterpreted Anthropic statement.Broader understanding of what AI actually does is essential.

Private credit and liquid alternatives momentum: Private credit topped
polling on capital deployment expectations, with long-term asset funds
combining private credit, real estate, private equity, and infrastructure
attracting significant interest. Liquid alternatives are seeing meaningful
increases driven by market volatility.

Evolving investor expectations: Clients increasingly demand more for less, with rising expectations around technology, enhanced products, and lower costs. Large institutional clients seek data access and digital experiences across complete lifecycles.

Talent retention structural challenges: Talent competition is fierce, with
structural tensions between limited partner alignment and retention. Multi-
product platforms paying carry across numerous products can incentivise
immediately, creating advantages over single-product managers.

Practical transformation execution: Strategic change requires simple goal
setting, patience over three-year horizons, and agile methodologies. Direct
engagement between talented individuals and technologists delivers vastly
superior outcomes.