Although the traditional business of providing equity research faces challenges, it is still an attractive opportunity for players that can adapt to deliver what the buy side values.
The traditional business of providing equity research to asset managers has been under pressure in recent years, as managers, challenged to deliver alpha to their clients, seek new forms of research and asset owners turn increasingly to passive strategies. Now, new regulation—specifically, the advent of MiFID II in Europe in 2018—is about to escalate these pressures.
