(Comparison) What Are the Differences between Asset Management Company, Private Equity, Corporate Finance and Advisory/Consulting Company?

Company Types

Explanations

Revenue Sources

Examples

Asset Management

Focus: Manages investment portfolios for clients. They aim to generate returns on investments while managing risks according to clients' investment objectives and risk tolerance.

 

Activities: Offers investment products like mutual funds (exchange-traded funds (ETFs), pension funds) and manages client wealth.

 

Clients: Retail investors, high-net-worth individuals, and institutions.

·       Fees charged on assets under management such as management fees performance fees.

·       Sales charges on investment products such as mutual funds.

·       Advisory fees for wealth management services.

Malaysia:

1)CIMB-Principal Asset Management Berhad.

2) Public Mutual Berhad

3) Aberdeen Standard Investments (Malaysia) Berhad

4) Kenanga Investors Berhad

5) Affin Hwang Asset Management Berhad

6) AmInvest

 

US:

1)Vanguard

2) BlackRock

3) Fidelity Investments.

Private Equity

Focus: Invests in private companies to drive growth and profitability. Mostly are SME and unlisted big company. They usually seek to exit their investments after a certain period, typically through a sale or initial public offering (IPO).

 

Activities: Acquires equity stakes, provides capital and strategic guidance.

 

Clients: Institutional investors, wealthy individuals.

·       Management fees charged on committed capital. (due diligence, deal sourcing, and portfolio management.)

·       Performance fees or carried interest based on investment returns.

·       Transaction fees from buying and selling portfolio companies.

1) Creador

2) Navis Capital Partners

3) Affin Hwang Private Equity

4) KV Asia Capital

5) Northstar Group

6) ECM Libra Private Equity

Corporate Finance

Focus: Provides financial advice to companies on mergers, acquisitions, and capital raising (IPO).

 

Activities: Helps with deal structuring, due diligence, and strategic planning.

 

Clients: Corporations, government entities.

·       Advisory fees for M&A transactions, capital raising, and financial restructuring.

·       Retainer fees for ongoing advisory services.

·       Success fees or commissions based on deal completion.

1)KPMG

2)PricewaterhouseCoopers (PwC)

3) Ernst & Young (EY)

4) Deloitte

5) RHB Investment Bank Berhad

6) Maybank Investment Bank Berhad

7) Affin Hwang Investment Bank Berhad

Advisory/Consulting

Focus: Offers strategic guidance and operational support to businesses.

Activities: Provides consulting services on strategy, operations, technology, and more.

Clients: Corporations, government agencies, non-profits.

·       Hourly or daily rates for consulting services.

·       Fixed project fees for specific engagements.

·       Subscription-based fees for ongoing advisory services or access to proprietary tools and databases.

1)McKinsey & Company

2)Boston Consulting Group (BCG)

3)Bain & Company

4)Accenture

5)Deloitte Consulting

6)PricewaterhouseCoopers (PwC) Consulting

7)Ernst & Young (EY) Advisory

 

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