ANALYSIS: Outsourcing in Asset Management Is Here to Stay (1)

Private investment management is a massive industry—with total private markets assets under management (AUM) estimated to be $11.7 trillion. Accordingly, private market trends can influence how advisers operate with respect to all $128 trillion of regulatory assets under management. Attorneys with clients in private investment management reported that their clients outsource many services like cybersecurity and IT, according to Bloomberg Law’s State of Practice Survey 2023. Few of the in-house lawyers surveyed think that these clients will bring such services in-house.

41% of registered investment advisers (RIAs) and independent broker dealers (IBDs) outsource at least some investment management services, according ...