McKinsey See the Great Convergence

A new report from McKinsey & Company highlights a profound shift underway in global asset management, as the traditional divide between public and private markets rapidly dissolves.

According to Asset Management 2025: The Great Convergence, the industry is entering a phase where public equities, fixed income, and private assets are no longer managed in isolation but increasingly combined within unified portfolio strategies.

This “great convergence” reflects growing investor demand for holistic, outcome-oriented solutions that blend liquidity, yield, and diversification.

The report notes that global assets under management reached a record $147 trillion in 2025, yet profitability remains under pressure, pushing firms to rethink how they construct and deliver investment products.

Central to this rethink is the integration of public and private markets, with new structures such as semi-liquid funds, evergreen vehicles, and public–private model portfolios gaining traction.

This convergence is being driven in part by the expansion of private capital into traditionally public-market channels, including retail wealth, defined contribution pensions, and insurance. At the same time, investors are increasingly allocating across asset classes in a single framework, rather than adhering to rigid distinctions between “traditional” and “alternative” investments.

McKinsey estimates that this structural shift, alongside related trends such as the rise of active ETFs, could unlock between $6 trillion and $10.5 trillion in “money in motion” over the next five years, as portfolios are reallocated and redesigned.

Ultimately, the report suggests that success in this new landscape will depend less on individual asset class performance and more on a manager’s ability to deliver integrated access across both public and private markets at scale.

Read the full report here: https://www.mckinsey.com/industries/financial-services/our-insights/asset-management-2025-the-great-convergence