The global Asset Management industry has seen significant leadership change over the last 18 months. Some of the largest managers in the world have seen their CEOs depart in what feels like more than a coincidence particularly given these are leaders of distinction who are rightly lauded for the impact they've had on the industry over the last 4 decades. 

The challenges facing the industry have not necessarily changed - do we have the right product for the next market cycle, are we best set up to serve our customers in a way that meets their long term needs, is our business commercially fit for purpose. 

Firms appear to agree that building a Private Markets capability is a must. And that owning the end customer relationship, through broad based Wealth Management offerings, is also important. We have seen the rise of OCIO as a way of building bespoke Solutions for Institutions and Pension Funds. And passive, ETF, index oriented investment firms continue to hoover up assets to the detriment of active public markets managers. 

We know that you need scale to succeed or that you need to be able to deliver alpha. We know that distribution is critical, but you cannot take your eye off investment performance either. If you're in the middle, consolidate or be consolidated. 

It would appear, then, that the answers to the challenges we face are clear. And yet, execution has proved incredibly difficult. Markets have not helped of course. But these challenges are systemic and longstanding and without market support, delivery becomes more stark. 

Alongside the transition of CEOs from some of the largest managers in the world, comes the secondary trend - of replacing them with internal candidates. Each of these global managers has undertaken external searches with the finest search firms available (us included!) And in each case, their boards have concluded that there is no one outside the firm that is able to answer the key challenges they face better than one of their own. 

What does this say about the state of the leadership cadre of the global asset management industry? Perhaps it reflects an enlightened willingness on the part of Boards to plan for succession better. Perhaps the shiny new thing from outside the organisation is not, in fact, the best option. 

Equally, perhaps there is a recognition that the word - Execution - is the key. Far more than strategy, it is the execute change is key. The need to get the operating model right that will allow the firm to deliver on its strategy that will ultimately determine the success of the firm. And individuals with an understanding of the organisation - perhaps with a financial and/or change background - are far better placed to deliver on the clear strategic change required than those from outside the firm. 

We're inclined to agree with this conclusion and believe it will make a real difference to the performance of these critically important firms. That and rising markets of course.