Multi Manager Investment Market Report 2025

The multi-manager investment market size has grown strongly in recent years. It will grow from $8.62 billion in 2024 to $9.19 billion in 2025 at a compound annual growth rate (CAGR) of 6.6%. The growth during the historic period can be linked to increasing regulatory compliance, a rising number of lawsuits against professionals, heightened awareness among small businesses, the expansion of service-based economies, and growing demand in the financial and legal sectors.

The multi-manager investment market size is expected to see strong growth in the next few years. It will grow to $11.68 billion in 2029 at a compound annual growth rate (CAGR) of 6.2%. In the forecast period, growth is expected to be driven by the accelerating digital transformation in services, rising cyber risks, the expansion of the freelance and gig economy, the growth of small and medium enterprises, and increasing business complexity. Key trends anticipated during this period include advancements in artificial intelligence-driven risk assessment, innovations in online policy distribution, the development of industry-specific coverage, the introduction of advanced claims automation systems, and progress in bundled insurance solutions.

The expansion of small and medium enterprises is expected to drive the growth of the multi-manager investment market in the future. Small and medium-sized enterprises (SMEs) are businesses with limited employees and revenue, typically operating locally or regionally. The rise in SMEs is attributed to better access to digital infrastructure, which reduces startup costs and facilitates easier market entry. Multi-manager investment aids SMEs by providing diverse funding options, making capital more accessible. It mitigates financial risk through careful manager selection and portfolio diversification, enhancing long-term growth prospects. For example, according to Statistics Canada, a Canada-based statistical agency, the number of small retails, services, and trade (RST) businesses reached 320,585 in 2022, a 1.7% increase from 315,221 in 2021. Hence, the growth of small and medium enterprises is fueling the growth of the multi-manager investment market.

Leading companies in the multi-manager investment market are developing innovative solutions such as multi-manager insurance-linked securities funds to provide diversified, uncorrelated returns through specialized reinsurance strategies. A multi-manager insurance-linked securities (ILS) fund is an investment vehicle that allocates capital across several specialist ILS managers to diversify risk and improve returns from insurance-related assets such as catastrophe bonds and reinsurance contracts. For instance, in March 2025, MLC Asset Management Pty Limited, an Australia-based investment firm, launched the MLC Reinsurance Investment Fund, a multi-manager ILS fund focused on reinsurance strategies. This fund offers institutional investors access to a diversified portfolio of ILS strategies, managed by a selection of top-tier specialist managers. It employs advanced risk analytics and dynamic allocation techniques to optimize performance across various market conditions while emphasizing capital preservation.

In December 2022, Patrizia SE, a Germany-based real asset investment management firm, acquired Advantage Investment Partners for $20.63 million (€18.92 million). This acquisition aims to expand Patrizia’s global presence and enhance its multi-manager capabilities in real assets, especially infrastructure and private equity, while gaining access to the Nordic region. Advantage Investment Partners is a Denmark-based multi-manager investment firm specializing in private equity, infrastructure, and real assets.

Major players in the multi manager investment market are BNP Paribas S.A., UBS Asset Management AG, Barclays PLC, Fidelity Investments LLC, BlackRock Inc., The Vanguard Group Inc., T. Rowe Price Group Inc., J.P. Morgan Investment Management Inc., Franklin Resources Inc., Invesco Ltd., Schroders plc, Wellington Management Company LLP, Pacific Investment Management Company LLC, Goldman Sachs Asset Management L.P., Aviva Investors Global Services Limited., ExodusPoint Capital Management LP, Manulife Financial Corporation, Magnetar Financial LLC, Brummer And Partners AB, Beach Point Capital Management LP.

North America was the largest region in the multi manager investment market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in multi manager investment report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the multi manager investment market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s recommendations and conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the financial sector, particularly in investment strategies and risk management. Heightened tariffs have fueled market volatility, prompting cautious behavior among institutional investors and increasing demand for hedging instruments. Banks and asset managers are facing higher costs associated with cross-border transactions, as tariffs disrupt global supply chains and dampen corporate earnings, key drivers of equity market performance. Insurance companies, meanwhile, are grappling with increased claims risks tied to supply chain disruptions and trade-related business losses. Additionally, reduced consumer spending and weakened export demand are constraining credit growth and investment appetite. The sector must now prioritize diversification, digital transformation, and robust scenario planning to navigate the heightened economic uncertainty and protect profitability.

Multi-manager investment is an investment strategy that distributes capital among multiple fund managers, each possessing unique styles or expertise in specific asset classes, with the goal of diversifying risk and improving returns. This method aims to deliver more stable returns by diversifying across various management styles and market perspectives.

The primary types of multi-manager investment include mutual funds, hedge funds, private equity, and investment trusts. A mutual fund is a pooled investment vehicle that gathers money from multiple investors to create a diversified portfolio of stocks, bonds, or other securities, managed by professional fund managers. These funds are applied in areas such as personal finance, corporate pension funds, insurance funds, university endowment funds, corporate investments, and others. They are distributed through different channels, including direct sales, financial advisors, and online platforms, serving a range of end-users such as institutional investors and retail investors.

The multi manager investment market research report is one of a series of new reports that provides multi-manager investment market statistics, including multi manager investment industry global market size, regional shares, competitors with a multi manager investment market share, detailed multi manager investment market segments, market trends and opportunities, and any further data you may need to thrive in the multi manager investment industry. This multi manager investment market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The multi manager investment market includes revenues earned by entities through investment manager selection, portfolio diversification strategy, asset allocation management, ongoing performance monitoring, and risk assessment and management. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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