Investec executive director, corporate advisory, Hein Vogel, said fund managers are feeling margin pressure as part of the wealth management value chain and are “actively looking at their options”.
Mr Vogel pointed to the recent deal between Access Capital and Challenger to form boutique infrastructure manager Whitehelm Capital, which Investec advised on.
“The funds management space is moving at a rapid rate and continues to grow off the back of the legislated superannuation system,” Mr Vogel said.
“However, as the industry matures, managers are under increasing pressure to reduce fees to win large mandates, which requires a greater level of funds under management,” he added.
Investec highlighted that there has been interest from overseas players looking for opportunities to buy firms as a means of expanding into this market.
“The proliferation of multi-boutique models also means a steady stream of buyers are looking for the right businesses to provide seed capital and support services too,” said Mr Vogel.
“In the short term, alternative asset classes like infrastructure and fixed income are receiving the most attention,” he added.
