Almost half of boutique asset managers are planning cross-border growth initiatives in the next two years, according to research from Universal Investment Group.
The 2025 Boutique Asset Management Survey found 49% have internationalisation strategies, with 23% planning to enter new geographies and 28% targeting growth through the launch of new products in existing international markets. A further 19% are considering mergers and acquisitions.
The top destinations for international expansion include German-speaking Europe (48%), APAC (16%) and UK/Ireland (14%).
Managers in Central Europe are largely focused on expanding into German-speaking markets (69%), while those in the US are interested in APAC markets (53%). However, UK-based firms are focused on growth closer to home, with 40% targeting the UK and Ireland.
The main challenges driving growth considerations across all regions are regulatory requirements (71%), increasing competition and margin pressure (41%), and differentiation in a crowded market (39%).
Evolving US-led trade policy, namely tariff uncertainty, was cited as a catalyst for diversifying investor bases internationally by 37% of managers in the UK and US.
To market their funds outside their home markets, asset managers overwhelmingly favour regulated structures.
Among UK and European respondents, UCITS and AIFs were the favoured regulated structures to market funds at 88% and 23% respectively, while US managers leaned towards AIFs (60%) and using non-regulated structures (53%).
The survey also found a growing trend towards outsourcing, with 52% of respondents planning to outsource at least one business function within the next 12-24 months. Currently, 82% of respondents globally use third-party providers, rising to 93% in the UK and US.
Group head of sales and fund distribution at Universal Investment Marcus Kuntz said: “As we move into increasingly uncertain times marked by rapidly evolving trade relationships, those boutiques who embrace outsourcing and internationalisation can remain nimble, competitive, and poised for long-term growth."
