Bain & Company has highlighted the necessity for asset managers to invest in private markets to mitigate potential losses in the current financial landscape. The firm projects that private-market assets under management could reach as high as $65 trillion by 2032, which would represent 30% of all assets under management (AUM) at that time. Bain describes this shift as 'the biggest opportunity in financial services.' The report also notes that declining fees in public markets are pushing asset managers to seek higher-fee opportunities in private markets, where hedge fund and private equity managers typically charge around 2% annually on assets. This trend underscores a broader industry shift towards private investments as a strategy for revenue generation.