France’s asset management sector posted strong gains in 2024, wiht operating income rising 20% as the industry navigated a period of sustained growth and increasing regulatory scrutiny. The sector, representing a key component of the European financial landscape, now manages over €5.2 trillion in assets and employs more than 24,000 professionals. New data reveals both robust capital positions for many firms and continued focus on compliance and risk management amidst evolving market dynamics,signaling a period of relative stability and expansion for the industry.
French asset management firms saw a significant uptick in operating results in 2024, according to recent data, as the sector continues to grow in both size and employment. The findings offer a snapshot of a key European financial hub navigating a dynamic economic landscape.
Sector Overview
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As of December 31, 2024, France was home to 695 approved portfolio management companies. The sector’s workforce expanded by 1.4% year-over-year, reaching 24,247 full-time equivalent employees. This growth was largely driven by independent firms, though subsidiaries of banks and insurance companies still represent a dominant force in the market.
Financial Performance
Assets under management (AUM) at French asset management companies continued their upward trend, totaling €5.265 trillion at the end of 2024. Overall operating income for these firms rose by 20% compared to 2023, fueled by an 8.4% increase in operating revenues, which reached €23.5 billion. Operating expenses also increased, but at a more moderate pace of 5.7% year-over-year.
Regulatory Oversight
In 2024, asset management companies dedicated a total of 181,393 person-days to compliance and internal control functions. The proportion of staff assigned to these roles remained stable at 3.2% of total declared personnel. Risk management also saw increased attention, with 146,578 person-days dedicated to the function – a 1.3% increase from 2023.
Capital Adequacy
Total shareholders’ equity declared by French asset management companies amounted to €7.63 billion as of December 31, 2024. At that time, 18 firms were identified as having insufficient capital relative to regulatory requirements. Conversely, 524 companies maintained a substantial capital cushion, with equity levels at or exceeding 30% above the required minimum.
