“How to Disrupt the Investing Industry” is an ongoing research study of the investing industry, with a focus on the gaps that exist for innovative incumbents and creative founders to build new business models. Institutional Investor published a summary of our study in their April issue (about 2,000 words). You can download the full study in PDF format (10,000 words).
The investing industry has grown dramatically for three decades in assets under management, but the core business models have not changed significantly. Asset management shows the traditional earmarks of an industry ripe for disruption — most obviously, extremely profitable incumbents and numerous unhappy clients. Many investors are unsatisfied with low after-fees industry performance, lack of transparency, underdeveloped internal controls, and inadequate access to truly alpha-generating strategies. Our research goal is to identify the global factors that are impacting both money holders and money managers, including technology innovation, changing client demands, tightening regulations, redistribution of global economic power, and a slow growth environment, among others. We identify the current emerging disruptors and the gaps that provide unprecedented opportunities to create innovative businesses.
Our research is led by Katina Stefanova (former senior executive at Bridgewater Associates, the world’s largest hedge fund); David Teten (Partner at a New York venture capital fund); and Brent Beardsley (the global head of wealth and asset management at the Boston Consulting Group). We are first and foremost industry experts, not academics. Our research is driven both by our work experience and our interviews with dozens of investors – institutional, family office, high net worth (HNW), and sovereign funds in all parts of the world.
We’re not aware of anyone else – either investors, consultants, or academics – who has conducted any formal research on the asset management industry using the formal“Disruptive Innovation” framework.
If you would like to discuss this topic further, please contact us.