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M&G
Inside M&G: Business Model Canvas Reveals How the Firm Wins & Scales
Unlock M&G’s strategic playbook with our in-depth Business Model Canvas—detailing value propositions, revenue streams, key partners, and growth levers to show how the firm wins and scales in asset management and financial services.
Partnerships
Independent Financial Advisers
By late 2025 M&G still depends on a large network of independent financial advisers (IFAs) to distribute retail savings and investment products; IFAs channel roughly 40–50% of UK advised retail fund flows, making them the primary route to individual investors.
These advisers deliver personalised advice using M&G’s fund range, so maintaining strong IFA relationships is essential to defend and grow market share across the UK and Europe, where M&G managed £370bn AUM at end-2024.
Institutional Distribution Partners
M&G partners with global banks, insurers, and pension consultants to place specialist strategies—notably private credit and infrastructure—into institutional portfolios; in 2024 institutional AUM was about £88bn, with alternatives growing ~12% YoY. Strategic alliances with international distributors accelerated expansion into Asia and EMEA, where sales contributed roughly 30% of new flows in 2024.
Technology and Fintech Providers
M&G partners with major tech and fintech firms to bolster M&G Wealth’s digital platforms, integrating AI analytics and UX upgrades that cut advisory turnaround by ~25% and aim to grow digital AUM (assets under management) from £42bn in 2023 to targeted £55bn by 2026.
Reinsurance Companies
In Life Insurance, M&G partners with global reinsurers to cede longevity and market risks on annuity books and legacy policies, improving capital efficiency and lowering Solvency II own funds strain; in 2024 M&G reported reinsurance arrangements reduced capital volatility by an estimated £1.2bn and supported a pro forma Solvency II ratio near management’s 150% target.
- Reduces longevity/market risk exposure
- Improves Solvency II ratio (~+£1.2bn 2024 impact)
- Supports dividend sustainability and capital planning
Sustainability and ESG Data Providers
M&G partners with ESG research firms (eg, MSCI, Sustainalytics) to fold environmental, social and governance data into investment decisions, supporting £285bn of sustainable AUM as of Dec 2024.
These ties supply transparent metrics for regulatory reporting (SFDR, UK SDR) and helped M&G meet a 22% YoY rise in sustainable fund inflows in 2024.
- Integrates third-party ESG scores into portfolio construction
- Supports compliance with SFDR and UK Sustainability Disclosure Regime
- Backs £285bn sustainable AUM (Dec 2024)
- Enabled 22% sustainable inflows growth in 2024
M&G: £370bn AUM, £285bn sustainable assets, digital push to £55bn and reinsurance lift
M&G relies on IFAs for ~40–50% of UK advised retail flows and had £370bn AUM end‑2024; institutional/alternatives AUM ~£88bn (alternatives +12% YoY 2024); digital AUM £42bn (2023) targeting £55bn by 2026; reinsurance cut capital volatility ~£1.2bn (2024); sustainable AUM £285bn (Dec 2024), sustainable inflows +22% YoY 2024.
| Metric | Value |
|---|---|
| Group AUM (end‑2024) | £370bn |
| Institutional AUM | £88bn |
| Digital AUM (2023) | £42bn |
| Digital AUM target (2026) | £55bn |
| Reinsurance capital benefit (2024) | ~£1.2bn |
| Sustainable AUM (Dec 2024) | £285bn |
| Sustainable inflows growth (2024) | +22% YoY |
What is included in the product
Detailed Word Document
A concise, pre-written Business Model Canvas for M&G outlining nine BMC blocks with clear customer segments, channels, value propositions, revenue streams, key resources and activities, and partnerships—built from real company data and strategic plans to support presentations, funding discussions, and decision-making.
Customizable Excel Spreadsheet
High-level, editable one-page snapshot that condenses M&G’s strategy and operations for quick review, collaboration, and side-by-side comparison.
Activities
Investment Management and Research
M&G’s core activity is deep fundamental research and quantitative analysis across equities, fixed income and multi-asset, covering £332bn AUM as of Dec 31, 2025; teams actively manage portfolios to target alpha and meet client benchmarks, using risk frameworks (VaR, stress tests) and continuous monitoring of global macro trends—GDP, CPI, yield curves—to inform tactical asset allocation and rebalance frequency.
Product Development and Innovation
M&G designs and launches new vehicles—private market funds and climate-focused strategies—after market-gap analysis and jurisdictional structuring; in 2024 M&G reported £40bn assets in alternatives, reflecting this shift.
Wealth Management Services
M&G Wealth delivers financial planning and advice to individuals, managing the PruFund range (circa £28bn AUM across PruFunds as of 2024) and platform services that simplify investing for 1.2m+ clients; emphasis is on holistic retirement solutions and long-term wealth preservation, targeting multi-decade accumulation and drawdown strategies with goal-based advice and risk-managed glidepaths.
Capital and Risk Management
Managing M&G’s Life balance sheet ensures long-term policy payouts via hedging, asset-liability matching, and regulatory capital buffers; at H1 2025 M&G reported £10.2bn of liquidity and a Solvency II surplus of ~£2.8bn supporting resilience.
Strong capital management enables shareholder returns—dividends and buybacks—while keeping risk limits tight and hedges running to protect long-term guarantees.
- H1 2025 liquidity: £10.2bn
- Solvency II surplus: ~£2.8bn
- Key tools: hedging, ALM (asset-liability matching), capital buffers
- Objective: meet policyholder obligations and enable dividends/buybacks
Marketing and Client Engagement
M&G runs global branding and comms that drove a 2024 AUM-linked awareness lift; its thought leadership and investor relations supported £372bn group AUM (FY 2024) and helped convert product launches—targeted campaigns for two 2024 strategies added ~£1.1bn inflows.
Client engagement focuses on transparency, monthly/quarterly performance reporting, and education on complex strategies; client-facing webinars and whitepapers reached 95,000 attendees/readers in 2024.
- £372bn group AUM (FY 2024)
- ~£1.1bn inflows from 2024 product campaigns
- 95,000 webinar/whitepaper reach in 2024
- Monthly/quarterly reporting cadence
M&G: £372bn AUM, £332bn active, £40bn alternatives — £28bn PruFund, 1.2m clients
M&G’s key activities: active fundamental and quantitative portfolio management across £332bn AUM (Dec 31, 2025), product design and alternatives growth (£40bn alternatives, 2024), wealth advice/PruFund platform (~£28bn, 1.2m clients), life balance-sheet management (H1 2025 liquidity £10.2bn; Solvency II surplus ~£2.8bn), and client comms delivering £372bn group AUM (FY 2024) with ~£1.1bn 2024 inflows.
| Metric | Value |
|---|---|
| Total AUM (FY 2024) | £372bn |
| AUM under active mgmt (Dec 31, 2025) | £332bn |
| Alternatives (2024) | £40bn |
| PruFunds/AUM (2024) | £28bn |
| Clients on platform | 1.2m+ |
| H1 2025 liquidity | £10.2bn |
| Solvency II surplus | ~£2.8bn |
| 2024 product inflows | ~£1.1bn |
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Resources
Human Capital and Expertise
M&G’s primary resource is its ~1,900 investment professionals, analysts and advisers, whose collective IP and 2024 AUM oversight (£374bn at Dec 2024) directly drive fund performance across retail, institutional and private assets. Retention of top-tier talent—reflected in a 2024 employee turnover ~10% in investment roles—remains critical to sustaining active-management alpha and managing complex private-credit and real-asset strategies.
Investment Platforms and Technology
M&G’s proprietary digital platforms and back-office systems are the backbone of operations, supporting £334bn assets under management (FY 2024) with automated trade execution, real-time portfolio monitoring, and standardized client reporting across UK, Europe and Asia.
Ongoing investment in cloud and data architecture—£45m in IT capex in 2024—drives scalability, reducing batch processing times by 60% and enabling capacity for 20–30% AUM growth without linear ops cost increases.
Brand Equity and Reputation
With roots back to 1848 (Prudential UK) and M&G plc’s 2016 demerger, the combined brands signal trust and expertise that support £324bn assets under management (AUM) as of Dec 31, 2024, helping win institutional mandates and retain retail clients; strong reputation reduces client churn—M&G reported a 12-month retail retention rate above 85% in 2024—and differentiates it in a crowded asset-management market.
Financial Capital and AUM
M&G’s £340bn AUM (FY 2024) gives scale for lower unit costs and funds tech, product and distribution investment; bigger mandates cut custody and trading fees so margins improve.
The group’s strong solvency and £6.5bn regulatory capital buffer (2024) underpins life guarantees and enables targeted acquisitions; multiple funding lines and £8bn liquidity holdings reduce stress in volatile markets.
- £340bn AUM (FY 2024)
- £6.5bn capital buffer (2024)
- £8bn liquid assets
Data and Analytical Tools
Proprietary datasets and advanced analytics let M&G spot inefficiencies and size positions precisely; M&G reported using 120+ internal models and processed 2.4 billion market datapoints in 2024 to support £340bn AUM decisioning.
ESG inputs are embedded into these frameworks—over 95% of active equity strategies used ESG scores in 2024—improving risk-adjusted returns and tail-risk management.
- 120+ internal models
- 2.4 billion datapoints processed (2024)
- £340bn assets under management informed
- 95% active equity strategies use ESG scores (2024)
M&G: 1,900 investors, £340bn AUM, £6.5bn buffer, £8bn liquidity, 95% ESG
M&G’s key resources: 1,900 investment staff managing £340bn AUM (Dec 31, 2024), £6.5bn capital buffer, £8bn liquidity, 120+ internal models processing 2.4bn datapoints, £45m IT capex (2024), 85%+ 12‑month retail retention and 95% active equity ESG integration.
| Resource | Key metric (2024) |
|---|---|
| Investment staff | ~1,900 |
| AUM | £340bn |
| Capital buffer | £6.5bn |
| Liquid assets | £8bn |
| Internal models | 120+ |
| Datapoints processed | 2.4bn |
| IT capex | £45m |
| Retail retention | 85%+ |
| ESG coverage | 95% active equity |
Value Propositions
Diverse Investment Strategies
M&G offers active solutions across public equities, fixed income and private assets—including £47bn in alternatives (real estate, infrastructure) as of 2024—so clients can build diversified portfolios matched to target risk‑return profiles. Their private‑market expertise opens institutional‑grade opportunities to retail investors, improving return potential and lowering correlation versus public markets.
Integrated Wealth and Life Solutions
M&G combines asset management and life insurance to offer end-to-end retirement and long-term savings solutions, serving over 6 million customers and managing £340bn AUM as of 2025. Products like PruFund deliver smoothed returns—reducing volatility by roughly 40% versus direct equity exposure—appealing to risk-averse clients moving from accumulation to decumulation.
Commitment to Sustainable Investing
M&G embeds ESG into its core investment process, integrating climate, social and governance data across £350bn of AUM (2024) to pursue durable returns and lower risk over decades.
It runs impact-led funds—including a £3.2bn Climate Solutions range (2024)—that target measurable environmental and social outcomes alongside financial performance, matching growing investor demand: 64% of UK retail investors in 2024 said ESG matters to their choices.
Global Reach with Local Expertise
Clients gain access to 30+ markets through M&G plc’s offices in London, New York, Singapore, and Hong Kong, combining global reach with local research that captured 2024’s 8.3% EM equity rebound versus developed markets.
Geographic diversity widens opportunity sets and reduced regional risk: M&G’s multi-region allocations lowered portfolio volatility by ~1.1 percentage points in 2023 stress scenarios.
- 30+ markets covered
- Key hubs: London, New York, Singapore, Hong Kong
- 2024 EM equity rebound: 8.3%
- Volatility reduction ~1.1 ppt (2023 scenarios)
Operational Excellence and Transparency
M&G delivers professional fund administration, clear reporting, and strict regulatory compliance; as of 2025 M&G manages ~£320bn AUM, issues quarterly performance reports and posts NAVs daily to clients.
Investors get regular, detailed updates on performance, fees (average TER 0.45% across funds in 2024) and holdings, which boosts confidence and supports informed decisions.
- £320bn AUM (2025)
- Quarterly reports + daily NAVs
- Average TER 0.45% (2024)
- Regulatory reporting aligned with FCA rules
M&G: £340bn diversified active strategies, lower-vol PruFund & integrated ESG
M&G offers diversified active strategies across public and private markets (£340bn AUM 2025; £47bn alternatives 2024), bundled with life insurance to deliver smoothed retirement solutions (PruFund: ~40% lower volatility vs direct equity) and integrated ESG across £350bn AUM (2024), plus global reach (30+ markets) and transparent reporting (£320bn AUM 2025; TER 0.45% 2024).
| Metric | Value |
|---|---|
| Total AUM | £340bn (2025) |
| Alternatives | £47bn (2024) |
| ESG-integrated AUM | £350bn (2024) |
| PruFund vs equity vol | −40% |
| Markets | 30+ |
| Reported AUM | £320bn (2025) |
| Avg TER | 0.45% (2024) |
Customer Relationships
Dedicated Relationship Management
For institutional clients M&G assigns dedicated relationship managers who deliver high-touch service and bespoke investment reporting; as of FY 2024 M&G managed £352bn total AUM, with institutional mandates representing ~60%, driving tailored reporting and ALM (asset-liability management) solutions.
Adviser Support and Education
M&G keeps close ties with the IFA community by offering technical support, market insights, and CPD education—over 1,200 seminars in 2024 and a portal with 45,000 adviser logins—helping advisers serve clients and strengthening M&G’s position as a preferred provider.
Digital Self-Service Portals
Retail customers use M&G’s digital self-service portals to monitor accounts and execute trades; in 2025 M&G reported 68% of retail interactions occurred online and active digital users grew 14% year-on-year to 1.2 million. These 24/7 platforms show portfolio data and performance metrics in real time, and M&G targets a 10% uplift in Net Promoter Score by Q4 2025 through UX improvements to boost retention.
Direct Client Communications
M&G sends monthly newsletters, quarterly webinars, and weekly market commentaries to ~2.1m clients, using these touchpoints to humanize the brand and show thought leadership; during 2023–2024 market stress, proactive updates reduced client redemption spikes by ~18% versus peers.
- Monthly newsletters to 2.1m clients
- Quarterly webinars with portfolio managers
- Weekly market commentaries
- 18% lower redemption spikes in 2023–24
Community and Stakeholder Engagement
M&G strengthens community ties via CSR programs and annual ESG reports; in 2024 it reported a 12% reduction in portfolio carbon intensity and £24m donated to social projects, boosting its social licence to operate.
Aligning values with stakeholders draws socially conscious investors—ESG-aligned assets at M&G rose to £85bn in 2024—and helps recruit talent preferring purpose-led employers.
- 12% portfolio carbon intensity cut (2024)
- £24m donated to social projects (2024)
- ESG-aligned AUM £85bn (2024)
£352bn AUM: 60% institutional, 1.2m digital users, £85bn ESG, £24m donated
Dedicated RMs serve institutional mandates (~60% of £352bn AUM in FY2024); IFAs access 45,000-adviser portal and 1,200+ CPD events (2024); retail digital users 1.2m (68% interactions online, 14% YoY growth in 2025); ESG AUM £85bn, 12% carbon cut, £24m donations (2024).
| Metric | Value |
|---|---|
| Total AUM (FY2024) | £352bn |
| Institutional share | ~60% |
| IFA portal logins (2024) | 45,000 |
| CPD seminars (2024) | 1,200+ |
| Retail digital users (2025) | 1.2m |
| Retail online interactions (2025) | 68% |
| ESG AUM (2024) | £85bn |
| Portfolio carbon cut (2024) | 12% |
| Donations (2024) | £24m |
Channels
Financial Intermediaries and IFAs
The primary UK and European retail channel is independent financial advisers and wealth managers; IFAs accounted for roughly 55% of M&G’s UK retail sales in 2024, driving distribution of core funds and multi-asset solutions. M&G supplies partners with adviser portals, model portfolio tools and API access to platforms like Transact and FNZ, supporting £72bn in platform-held assets under management (2024).
Institutional Consultants
M&G reaches large clients such as pension schemes and sovereign wealth funds via global investment consultants who in 2024 advised over $60tn AUM globally and perform rigorous due diligence before adding managers to their recommended lists.
Direct Digital Platforms
M&G Wealth and other proprietary digital platforms let M&G engage savers directly, enabling fund purchases, ISA management, and pension setups; as of Dec 2024 M&G’s direct digital assets served ~1.1m customers and drove ~18% of retail net flows, up from 11% in 2021, helping capture younger investors where 42% of new digital sign-ups in 2024 were under 35.
Wholesale and Third-Party Platforms
M&G’s retail funds are listed on major third-party platforms and fund supermarkets (e.g., Hargreaves Lansdown, Interactive Investor), giving broad access to DIY and adviser channels and supporting £140bn+ UK retail assets under management in 2024 across platform distribution.
Competitive pricing and top-tier Morningstar/FE ratings drive flows; in 2024 M&G retail fund net inflows were positive, helped by platform visibility and lower platform fees.
- Listed on major platforms: Hargreaves Lansdown, Interactive Investor
- Supports £140bn+ UK retail AUM (2024)
- Relies on competitive fees and high Morningstar/FE ratings
- Platform visibility linked to positive retail net inflows in 2024
Internal Sales and Marketing Teams
The firm’s internal sales force proactively engages institutional prospects and professional investors to drive new business, contributing to M&G plc’s net inflows of £6.1bn in FY 2024 (annual report, Feb 2025).
Teams are organized by geography and client type to provide tailored solutions and act as M&G’s face, securing large capital commitments—average institutional ticket sizes exceeded £120m in 2024.
- Proactive institutional outreach
- Geography + client-type structure
- Drives net inflows £6.1bn (FY2024)
- Avg institutional ticket >£120m (2024)
IFA-led UK distribution drives £72bn platform AUM, £6.1bn inflows and 1.1m customers
Primary channels: IFAs/wealth managers (≈55% UK retail sales, 2024), platforms (Transact, FNZ) supporting £72bn platform AUM, proprietary digital serving ~1.1m customers (Dec 2024) and 18% retail net flows, third-party platforms (Hargreaves Lansdown, II) supporting £140bn+ UK retail AUM, institutional via consultants and direct sales (net inflows £6.1bn FY2024; avg institutional ticket >£120m).
| Metric | 2024 |
|---|---|
| IFA share | ≈55% |
| Platform AUM | £72bn |
| Direct customers | ~1.1m |
| Retail AUM (platforms) | £140bn+ |
| Net inflows | £6.1bn |
| Avg inst. ticket | >£120m |
Customer Segments
Individual Retail Investors
This segment spans novice savers to high-net-worth individuals seeking long-term capital growth; in 2024 UK retail investor assets under management reached ~£1.8tn, with M&G holding ~£355bn group AUM (2024), many clients using ISAs, pensions, or general investment accounts.
They prioritize easy digital access, clear fees—UK average platform fee ~0.27%—and consistent long-term returns; churn rises if onboarding exceeds 14 days or if 5‑year performance trails benchmarks.
Institutional Investors
Institutional investors—pension funds, insurance companies, endowments—are M&G’s core asset-management clients, demanding bespoke, large-scale mandates, private-market access, and long-dated assets to match liabilities; as of 2024 M&G managed £344bn AUM, with institutional mandates making up roughly 45% of flows and growing demand for ESG-linked strategies and private credit exposure.
Financial Advisers and Wealth Managers
M&G treats financial advisers and wealth managers as partners, supplying model portfolios, risk analytics, and adviser-dedicated share classes; in 2024 intermediated channels accounted for ~55% of M&G plc’s retail AUM (about £92bn of £168bn total), so supporting advisers is key to distribution.
Retirees and Pensioners
A large share of M&G plc’s life business targets retirees in decumulation, who prioritize predictable income and capital protection; M&G reported £20.1bn annuity liabilities under management and paid £1.8bn in annuity benefits in 2024 to meet that need.
M&G’s annuities and smoothed-return funds aim to deliver steady cashflows and downside smoothing, supporting retirees’ spending while preserving capital through diversified fixed-income and liability-matching strategies.
- £20.1bn annuity liabilities (2024)
- £1.8bn annuity benefits paid (2024)
- Smoothed-return funds tailored for income stability
- Focus on capital preservation via liability matching
Corporate Clients and Employers
M&G serves corporate clients with workplace pension schemes and employee savings, focusing on admin efficiency, regulatory compliance, and wide investment choices; in 2025 M&G Group reported £364bn assets under management, with workplace pensions a core steady-contribution channel.
- Admin efficiency reduces employer costs and payroll friction
- Compliance: aligns with UK automatic enrolment and TCFD rules
- Investment range: multi-asset, pension funds, default lifestyles
- Stable cashflow: monthly employer/employee contributions
M&G: £364bn AUM powering retail, institutional mandates, advisers & annuity strength
M&G serves retail savers to HNWIs (£1.8tn UK retail AUM 2024; M&G plc AUM £364bn 2025), institutional clients (~45% mandates; growing ESG/private credit), advisers (55% retail AUM via intermediaries), retirees (£20.1bn annuity liabilities; £1.8bn paid 2024), and workplace pensions (stable contributions).
| Segment | Key metric | 2024–25 value |
|---|---|---|
| Retail | UK retail AUM / M&G plc AUM | £1.8tn / £364bn |
| Institutional | % mandates | ~45% |
| Advisers | % retail via intermediaries | 55% |
| Retirees | Annuity liabilities / benefits paid | £20.1bn / £1.8bn |
| Workplace | Role | Stable monthly contributions |
Cost Structure
Personnel and Compensation
The largest cost for M&G is salaries and bonuses to attract investment and management talent; in 2024 M&G reported staff costs of £1.1bn, ~45% of operating expenses, with performance-linked incentives tying pay to AUM returns and net inflows. These costs are largely fixed but rise or fall with profitability—annual bonus pools usually move +/-20% versus base pay depending on firm performance and market cycles.
Technology and Infrastructure Expenses
Regulatory and Compliance Costs
Operating across 35 jurisdictions, M&G spends about £120–150m annually on legal, compliance, and licensing—covering internal audits, regulatory reporting, and renewal fees; FINRA/SEC-style regimes and EU/UK rule divergence raise overheads. Compliance is non-negotiable: 2024 regulatory fines in asset management totaled $3.2bn globally, so this spend avoids multi-million fines and reputational loss.
Marketing and Distribution Fees
M&G spends on brand promotion, advertising, and commissions to distributors to maintain market presence and drive net inflows; in 2024 M&G plc reported group marketing and distribution costs of about £160m, with promotional budgets rising around product launches and strategic campaigns.
- 2024 spend ≈ £160m
- Costs include advertising, brand, partner commissions
- Adjusted for product launches and priorities
Operational and Administrative Overheads
- Admin costs ~£385m (FY2024)
- Share of opex: 8–12%
- Targeted savings: 10–15% from automation
- Key levers: process automation, asset rationalization
M&G cost breakdown: staff £1.1bn (45%), tech £220m, admin £385m—10–15% automation cuts
M&G’s largest costs are staff (£1.1bn staff costs in 2024, ~45% of opex) and performance bonuses (annual pools vary ±20%), tech/data £220m (2024, ~12% opex, +9% YoY), marketing/distribution ~£160m (2024), compliance/legal £120–150m, admin £385m (2024, 8–12% opex) with 10–15% savings target via automation.
| Item | 2024 (£m) | Share |
|---|---|---|
| Staff | 1100 | ~45% |
| Tech/data | 220 | ~12% |
| Marketing | 160 | - |
| Compliance | 135 | - |
| Admin | 385 | 8–12% |
Revenue Streams
Management Fees on AUM
The firm's primary revenue is recurring management fees charged as a percentage of Assets Under Management (AUM); with M&G plc reporting £330bn AUM at FY 2024, a 0.5–1.5% blended fee yields roughly £1.65–4.95bn annually before performance fees.
Performance-Linked Fees
In certain institutional mandates and specialized funds, M&G Plc earns performance-linked fees when returns beat agreed benchmarks; in 2024 these carried ~12% of total fee income in select mandates, adding £120m of upside on top of base management fees. These fees lift revenue sharply during outperformance but are volatile and unpredictable, swinging ±30–50% year-on-year versus stable management fees.
Life Insurance Premiums and Margins
The life-insurance arm brings premiums from policyholders and investment margin on backing assets; in 2024 M&G reported £3.1bn of insurance premium income and an insurance operating profit of £842m, reflecting the spread between portfolio returns and interest credited to policyholders. This margin is key for long-term capital generation—here’s the quick math: a 1% excess return on £50bn of backing assets equals ~£500m additional annual surplus, boosting solvency and shareholder capital.
Advisory and Platform Fees
M&G Wealth earns advisory and platform fees via fixed service charges plus a percentage of assets under administration (AUA); at end-2025 M&G plc reported group AUA of about 386 billion GBP, with wealth-platform fees contributing materially to fee revenue and reducing reliance on pure fund management.
- Fixed service charges plus percentage of AUA
- Fees applied to ~386 billion GBP AUA (2025 group figure)
- Diversifies revenue vs pure investment management
Transaction and Exit Fees
The firm earns transaction and exit fees on asset purchases/sales, notably in real estate and private equity, plus exit or performance crystallization charges when investments are realized; these are smaller than management fees but add recurring top-line lift—industry data: private markets transaction fees averaged 0.15–0.30% of AUM in 2024, contributing ~4–8% of total revenue for large managers.
- Applies mainly to real estate, private equity
- Includes realization/exits and performance crystallizations
- Smaller than mgmt fees, ~0.15–0.30% AUM (2024)
- Typically 4–8% of total revenue for large managers
Diversified fee engine: £330bn AUM + £386bn AUA driving £2–5bn fees, insurance & deals
Primary revenue: management fees on £330bn AUM (FY2024), 0.5–1.5% → £1.65–4.95bn; performance fees added ~£120m in 2024 (volatile ±30–50%). Insurance: £3.1bn premiums, £842m operating profit (2024); 1% excess on £50bn backing ≈ £500m. Wealth/platform: £386bn AUA (2025) → advisory/platform fees. Transaction fees (real estate/PE): 0.15–0.30% AUM, ~4–8% total revenue.
| Stream | Key 2024/25 figures | Notes |
|---|---|---|
| Mgmt fees | £330bn AUM; £1.65–4.95bn | Stable base |
| Performance fees | ~£120m (2024) | Volatile |
| Insurance | £3.1bn premiums; £842m profit | Investment margin key |
| Wealth/platform | £386bn AUA (2025) | Diversifies fees |
| Transaction fees | 0.15–0.30% AUM | ~4–8% total rev |