Merrill Lynch Expands Private Markets Assets to £77 billion within the First Half of the Year

In the first half of 2025, M&G, a leading international active asset manager, reported a total assets under management and administration (AUMA) of £13bn in the impact and private equity sector, marking a decrease from £15bn in 2024. However, the company's strategic international presence has proven to be a significant advantage, contributing to the growth in other areas of its business.

Andrea Rossi, the group head of M&G, attributed the result to a substantial £2.6bn net inflows from external clients in asset management. This influx, combined with the international expansion of M&G's business, has been a key driver of the company's growth.

M&G's international client base currently accounts for 58% of its asset management third party AUMA, a significant increase from 37% five years ago. The company's growing international presence is evident in its established footprint in Europe and its recent access to attractive Asian markets.

The growth in the asset management business has been supported by M&G's market leading investment performance. This is particularly true in the private markets sector, where M&G's AUMA grew to £77bn in the first half of 2025, up from £74bn in 2024.

Breaking down the private markets AUMA, real estate accounts for £33bn, followed by private and structured credit at £25bn. Despite the growth in these sectors, M&G's infrastructure AUMA remained flat at £6bn, with £0.2bn in a capital queue.

M&G has a capital queue of £6.5bn for its broadening private market offering, with £2.7bn in private and structured credit and £2.3bn attached to real estate. The company also reported £2.1bn in net flows from open business, a £3.2bn improvement from the same period last year.

Despite the growth in private markets AUMA, M&G reported an adjusted operating profit of £206m, one per cent lower than the same period a year ago. This decrease in profit is not indicative of the overall health of the company, but rather a reflection of the challenges faced in the impact and private equity sector.

In conclusion, while M&G experienced a decrease in AUMA in the impact and private equity sector, the company's strategic international presence and market leading investment performance have driven growth in other areas of its business. With a strong capital queue and a focus on expanding its private market offerings, M&G is well-positioned for continued success in the global asset management industry.

Merrill Lynch Expands Private Markets Assets to £77 billion within the First Half of the Year