There are topics we prefer to postpone because they are uncomfortable—such as advance healthcare directives or powers of attorney. We know they are important, but as long as there is no immediate need for action, we tend to ignore them.

The same applies to the generational transition in asset management. Many asset managers are aware of the issue but fail to act—until it is too late. This has serious consequences for both their businesses and client relationships.

Why It’s So Difficult to Take Action

Unpleasant topics like one's own generational transition are often suppressed. As long as one’s health is stable, there seems to be no urgency to address succession planning or appointing a deputy. But what happens if an emergency arises and no clear regulations are in place? This is not only risky for the company but also stressful for clients who rely on a well-structured succession.

For many asset managers, external pressure is the deciding factor. It often takes an external push—whether from a colleague, advisor, or institution—to address the issue. If clients do not ask about it and there are no health concerns, the topic of succession can quickly be forgotten.

Generational Transition: Two Sides of the Coin

It is essential to consider the generational transition from both the asset managers’ and the clients’ perspectives. Many asset managers have no direct contact with their clients’ heirs, while at the same time ignoring the evolving needs of the younger generation. As a result, they risk becoming unattractive to the next generation.

The requirements for asset management have changed significantly in recent years. Young people value digital solutions, transparency, and sustainable investment strategies. They are often overwhelmed by the flood of information and, therefore, have a greater need for clear answers and understandable explanations. Those who fail to recognize or address these needs risk losing an entire generation of potential clients.

From Deputy to Successor

A well-organized generational transition starts with appointing a deputy and is independent of age. Who will take over the business if the owner suddenly becomes unavailable? Long-term succession planning must also be addressed in a timely manner to ensure client relationships are maintained. Many asset managers let valuable time slip away—a mistake that could easily be avoided.

Forward-thinking planning can relieve not only the company itself but also its clients. It is about establishing clear structures, both internally and externally, and integrating potential successors at an early stage. Equally important is understanding and catering to the needs of the next generation of clients.

Opportunities in Change

A well-planned generational transition does not have to be a painful process—on the contrary, it offers great opportunities. Those who act early can bring fresh energy into their business and attract new clients. A clear succession plan signals responsibility and foresight, fostering trust among both employees and clients.

Building relationships with younger clients and their heirs is just as crucial. Those who ignore the needs of the younger generation will gradually lose relevance. This transition presents an opportunity to develop new, modern services that align with the expectations of this target group.

Time to Act
The generational transition in asset management is inevitable. Those who ignore it risk not only their businesses but also their client relationships. It is crucial to address the issue early—not just for one’s own benefit but also in the best interest of clients. The rule is simple: it is never too early to take action. The right time is always now.

Vivien Jain is the CEO of the Swiss asset management company Aquila. The 40-year-old lawyer has been with the company since 2014, gradually taking on more responsibility in the areas of legal, compliance, and risk before joining the executive board in 2016. The Canadian-Swiss dual citizen with Indian roots previously worked for the consulting firm PwC. Aquila, together with its approximately 90 partner firms, manages client assets exceeding 22 billion francs.