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Brace for the rise of ‘mega managers’ as M&A heats up

Despite the pandemic, deal-making has raged on over the past 12 months, with economies of scale and economies of scope becoming increasingly important

Brace for the rise of ‘mega managers’ as M&A heats up
Photo: Getty Images

Mergers and acquisitions between fund managers have been running hot for years amid fears that smaller and mid-sized firms are no longer able to keep up with the behemoths of the market.

Despite the pandemic, dealmaking has raged on. Franklin Templeton’s acquisition of US rival Legg Mason went ahead as planned, as did Morgan Stanley’s purchase of Eaton Vance, which created an entity worth $1.2tn.

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