A note from John Donohoe, Founder & CEO at Carne Group

Carne turns a milestone 21 years this month, an age that marks a significant point in maturity. I would like to think, in that time, our clients have come to know us as their go-to partner for comprehending investment funds and governance – translating them into pragmatic solutions and opportunities for growth.

We have spent the past two decades creating value and infrastructure that supports investors, managers and asset allocators. Through collaborating with this ecosystem, we became the first third-party AIFM authorised in Europe and the first third-party management company with licenced entities in both Ireland and Luxembourg.

We have grown from a small team in a small office to the largest third-party management company in Europe. Today, we partner with more than 650 clients, from boutique firms to the majority of the world’s 20 largest fund managers – supporting funds distributed in over 160 countries across eight global locations.

A silent super evolution: Insights from our Supermodel report

Turning a milestone age has made me reflect on how the asset management industry has transformed since the days I could drink four or five pints and not suffer the next day.

Traditional managers have been grappling with the rise of passive investments and increased investor appetite in private markets. And while product development and distribution have charged forward in the pursuit of growth, the industry’s operational foundations have struggled to keep pace.

Carne’s Supermodel report which examines insights from 200 of the industry’s global leaders – shows the demand for more efficient, agile operating models that can not only meet today’s challenges – but also adapt for the future.

Margin pressure is nothing new, but as our Supermodel report highlights, it is reaching new heights. Almost three-quarters (72%) of the traditional asset managers we surveyed expect pressure on their firm’s profit margins to increase significantly over the next two years, as do more than half (56%) of alternative managers.

In pursuit of growth

Tightening margins have made growth a necessity, and managers are introducing new products and geographies to tap into new revenue streams. Almost two-thirds (61%) of asset managers cite attracting clientele from the wealth segment as among their top growth strategies.

These strategies add complexity to operations. As managers diversify, they encounter new regulatory requirements, distribution challenges and a more fragmented client landscape.

Operations teams are feeling the strain, with over half (52%) of executives reporting that growth initiatives are resulting in operational inefficiencies. These limitations have led firms to consider third-party partnerships as a way to win the margin game.

This form of outsourcing isn’t a simple transactional relationship; it is one in which asset managers invite new expertise into their business models to ensure they can keep pace with the changing landscape. By shifting some (or all) of the operational burden onto external, expert providers, firms preserve their internal resources for what they do best. But what is less discussed but arguably even more important is choosing a provider that cares about you and your business. That to me is the real meaning of “trusted” partner.

Carne at 21: The Supermodel operating framework

We have invested in our capability for 21 years, to position Carne as Europe’s largest independent, third-party management company and specialist solutions provider. It’s our sole focus. We continually invest in our people, processes, data and technology to make a significant difference for our clients in this area of specialised activity.

By truly understanding their needs, we’ve built lasting relationships – I am proud to say that our first three clients are still with us today.

As Carne Group turns 21, our journey reflects the same adaptability and resilience required of successful asset managers today. We continue to be curious and collaborative, developing innovative solutions to enhance our clients’ businesses.

As we embark on the next chapter, I want to thank you, our clients and partners, for your trust and support. Together, we are shaping the future of asset management, building more resilient and efficient operating models.

John Donohoe

Founder & CEO, Carne Group