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market sizing: how much do asset management firms spend on 3rd party information each year?

estimation market sizing market estimation Market sizing market sizing assumptions marketsizing
New answer on Apr 04, 2021
1 Answer
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Anonymous A asked on Apr 01, 2021

stuck on this market sizing question

my initial approach is to find 1)estimate how many asset managment firms are in the us 2)how much $ they spend on 3rd party info, and then multiply the two

1st question: i would roughly estimate that perhaps there's about 10,000 firms in the US, but how would i go about making a better estimation on the # of asset management firms

and secondly, how to best segment (perhaps by firm size big, med, small) and average the amount of $ the firms spend? what is a good ballpark for the $ spent on third party info?

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Clara
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replied on Apr 04, 2021
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

Hello!

Overall, it looks good.

I agree that some of the sub-questions (e.g., asset mangement firms, how many?) are not what so ever straightforward. In an interview, you would have the chance to ask and get guidance data for those.

Hope it helps!

Cheers,

Clara

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Clara

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