The author of this article looks at seven trends he expects to play out in the world's asset management sector for the rest of 2025.

The first two months of 2025 are already coming to an end, marking the beginning of the gradual asset management transformation. Global economic and political shifts are making the industry evolve and form in new directions. Nevertheless, the future of the industry seems bright despite any external changes – in less than 10 years the assets under management are going to nearly double. In this article, the author, Sergei Grechkin, FRM, chief risk officer at Cayros Capital, a Cyprus-based alternative investment fund management (AIFM) company, talks about what the coming months and the rest of 2025 may have in store for the asset management sector. 

The editors are pleased to share these views; the usual editorial disclaimers apply. Email tom.burroughes@wealthbriefing.com and amanda.cheesley@clearviewpublishing.com if you want to comment.

The growing interest in crypto
The cryptocurrency market remains one of the hottest topics in asset management. It is expected to exceed $4 trillion this year already. Against this growth, it is unsurprising that most institutional investors are planning to increase their crypto investments. 

Donald Trump’s recent inauguration has only catalyzed the crypto market growth. His warm attitude toward the crypto industry strongly influences the landscape. Today, Trump actively conducts a pro-crypto policy and pushes digital asset adoption. As an example, not so long ago he signed an executive order for promoting crypto in the US, including working toward developing a national digital asset stockpile.

Another trend that makes the field even more appealing to investors is the constant growth of tokenized assets – the tokenization of traditional assets, such as real estate and equities. By 2030, the market is expected to have over $2 trillion in tokenized assets. 

ESG principles are becoming core for portfolios
Environmental, social, and governance (ESG) factors have already become an integrated part of investing and will continue to reshape investment portfolios this year. Today, ESG principles are not just an addition to investment strategies but the basis for building portfolios that can generate income. They are becoming a driver of sustainable development.

By 2030, global ESG assets under management are expected to approach $50 trillion, representing over 25 per cent of total AuM. In this movement, Europe is expected to remain the leading contributor. As for the US, it may face stagnation due to the presidential elections and growing ESG pushback. 

The global economic stagnation and rising inflation
According to the IMF, the global economy is projected to grow at a modest rate of 3.3 per cent both in 2025 and 2026. Compared with the result in 2024, it is down by 0.2 per cent, meaning negative projections for this year.  

Inflation is still a problem among developed economies. To neutralize it, monetary policy remains tough, with elevated interest rates to counter inflation. Although there are some projections on monetary easing in the US, the Federal Reserve is targeting ambitious 2.5 to 3.0 per cent inflation. The European Central Bank, in turn, is aiming for 3 to 3.5 per cent. In the context of higher rates, fixed-income strategies will be beneficial. For example, US Treasuries are expected to offer returns above 4.5 per cent.

Growth in emerging markets 
While advanced economies are experiencing problems, emerging markets are expected to grow in 2025. Their GDP growth is expected to exceed 4.5 to 5.0 per cent, making them more and more attractive for investments. At the end of 2024, the emerging markets' manufacturing sector outperformed that of the developed markets. However, their service sector grew more quickly than in emerging markets, helping them stay ahead overall. 

AI transformation
AI and machine learning are headily changing the asset management industry, and it seems that their capabilities are even exceeding expectations. AI has turned out to be a great helper for asset managers in automating operations or conducting better-performing portfolios. According to BSG’s survey, respondents from the industry anticipate major changes soon, and two-thirds plan to launch a generative AI (GenAI) use case this year.

Private markets growth
Private markets, particularly private equity and credit, are on track for expansion. Numbers suggest that their global value will surge from $13 trillion in 2024 to $20 trillion by 2030, driven by a growing appetite for alternative investments. Real assets, such as infrastructure and real estate, will continue to offer stable, long-term returns. 

Meanwhile, private credit is expected to play a major role in this upward trend.

The global talent gap
One of the main challenges the whole industry will face this year is the shortage of skilled professionals. This concern is especially relevant to risk management and the quantitative finance field. Recently, this gap has widened even more, mainly because of technological development and outdated hiring practices – most employers in finance are struggling to find qualified talent. On top of that, the demand for quantitative talent is growing by 20 per cent annually, with few candidates being able to meet industry requirements in AI-driven modeling and data analytics.

About the author

Sergei Grechkin, FRM, is chief risk officer at Cayros Capital, a Cyprus-based alternative investment fund management (AIFM) company that provides private and institutional capital management services through investment funds. Grechkin is a C-level risk management executive and experienced finance professional, amassing more than 12 years of expertise across financial institutions and regulatory spheres.