In 2022, the asset management industry faced a significant downturn driven by volatile macroeconomic conditions and rising interest rates, leading to declines in AUM and fee revenue as most asset classes posted negative returns except cash and commodities. Operating costs rose due to wage and data inflation, prompting headcount cuts, outsourcing, and adoption of front-to-back digital platforms. While top-performing firms managed stronger margins, attracting organic net flows remained difficult. M\&A activity focused on expanding expertise in alternatives, ESG, and geography, with some smaller public managers choosing to delist.

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