The Great M&A Wave Has Begun, and It’s Redefining the Future of Consulting and Private Markets
Private markets are entering a defining decade. By 2030, assets under management could exceed $25 trillion, up from around $14 trillion today. Yet rather than being spread across thousands of firms, much of this capital is expected to sit within a relatively small number of dominant global platforms. The era of one-stop-shop mega-managers is fast approaching.
At Consulting Point, we view this consolidation not as a passing trend but as a fundamental structural shift that will reshape how firms raise capital, manage portfolios and compete for talent.
The Drivers of Consolidation
Consolidation in private markets is being driven by a combination of pressures:
Fundraising has become more complex, requiring dedicated investor relations and marketing teams.
Regulatory, compliance and operational costs have risen sharply.
Competition for both assets and people has intensified.
Investment in technology demands scale to be cost-effective.
According to Consulting Point’s experience across the asset management landscape, firms now see M&A as an essential lever for efficiency and growth. The most successful are no longer buying simply to diversify but to integrate talent, technology and processes that enable sustainable performance and long-term scalability.
The Third Wave of M&A
We are now entering what can be described as the third major wave of private markets consolidation.
The first wave focused on early diversification, building exposure across asset classes such as real estate, private equity and infrastructure.
The second wave, beginning around 2020, centred on rapid expansion and capability building.
The third wave, now underway, is about integration and optimisation. It focuses on aligning investment teams, technology platforms and client engagement models to deliver multi-asset, global solutions with institutional-grade efficiency.
This shift has already accelerated both deal volume and size. Large asset managers now maintain dedicated corporate development functions, sometimes with teams of fifty or more people focused entirely on identifying and integrating targets.
What Firms Stand to Gain
For acquiring firms, the benefits are clear. Consolidation brings operational efficiency, better technology adoption and greater access to investors and opportunities. Scale allows for process optimisation, cost reduction and improved execution across portfolios.
For the acquired firm, joining a larger platform can provide access to global fundraising infrastructure, cross-selling opportunities and stronger brand visibility.
As Consulting Point notes, strategic consolidation creates value when it is underpinned by culture, clarity and capability, not just by size.
The Risks of Rapid Growth
However, not all consolidation creates value. M&A undertaken for the wrong reasons, or executed poorly, can quickly erode performance and morale.
Cultural misalignment, loss of agility and post-integration fatigue are common pitfalls. Without clear leadership alignment and a structured integration plan, acquisitions can end up fragmenting rather than strengthening an organisation.
Consulting Point cautions that M&A should never be pursued as an act of defensive scaling. It must be strategic, culturally compatible and guided by an operating model that empowers, rather than dilutes, entrepreneurial thinking.
The Future Landscape
Over the next five years, the industry will continue to consolidate, but the pace and pattern will vary across asset classes. Private equity remains the most fragmented and is therefore the most likely to see sustained M&A activity. Infrastructure and credit platforms, having already achieved significant scale, may consolidate more selectively.
For mid-market firms and specialist managers, differentiation will be essential. Those unable to clearly articulate their edge, whether through sector focus, geographic expertise or innovation, risk being absorbed or sidelined by larger multi-asset platforms.
Consulting Point anticipates a growing divide between firms that can adapt to institutional expectations and those that cannot. The winners will be those that combine global reach with entrepreneurial agility.
Consultants at the Centre
For management consultants advising these firms, this transformation creates both challenge and opportunity. Integration planning, organisational design, technology enablement and leadership alignment are now as critical as financial structuring.
Consulting Point’s teams are already supporting asset managers and investors in this environment, helping them define integration roadmaps, assess cultural compatibility and develop operating models that balance scale with speed.
Conclusion
The global alternatives industry is evolving into a landscape dominated by a handful of powerful platforms, each aiming to deliver end-to-end solutions for increasingly sophisticated investors.
Consolidation, when executed well, can unlock operational excellence and strategic depth. When pursued without purpose, it risks destroying the agility that originally made these firms successful.
As Consulting Point concludes, the future belongs to firms that can integrate scale with strategy, and growth with governance. Those that master this balance will define the next generation of private markets leadership.