Cohen & Steers' September 2025 AUM and Net Flows: Strategic Positioning and Investor Sentiment in Alternative Income Markets

Cohen & Steers, Inc. (NYSE: CNS) reported preliminary assets under management (AUM) of $90.9 billion as of September 30, 2025, a modest increase of $542 million from August 31, 2025, according to Cohen & Steers' announcement. This growth, driven by $945 million in market appreciation, was partially offset by $322 million in distributions and $81 million in net outflows. While the firm's AUM growth appears restrained, its strategic focus on real assets and alternative income-spanning listed and private real estate, preferred securities, infrastructure, and commodities-positions it to capitalize on broader macroeconomic shifts in 2025 (per the firm's announcement).

Strategic Positioning in Alternative Income Markets

Cohen & Steers' AUM growth reflects its entrenched role in income-generating alternatives. Institutional accounts, including advisory and subadvisory services, accounted for $34.711 billion in September 2025, with open-end funds reaching $44.421 billion and closed-end funds hitting $11.765 billion, according to the company announcement. This diversification across product types underscores the firm's ability to cater to both institutional and retail investors seeking uncorrelated returns.

The firm's emphasis on real assets aligns with 2025 industry trends, where real estate and infrastructure remain critical for inflation hedging and yield generation, as highlighted in McKinsey's analysis. For instance, global private equity AUM is projected to surpass $11.7 trillion in 2025, driven by buyout funds and infrastructure deals (CoinLaw). Cohen & Steers' expertise in preferred securities and resource equities further complements this trend, as investors increasingly prioritize assets with predictable cash flows (per the firm's announcement).

However, the firm faces headwinds from net outflows in September, a challenge shared across the alternative asset management sector. Competitors like Blackstone ($1.2 trillion AUM) and Brookfield ($1 trillion AUM) have also experienced uneven inflows, reflecting broader investor caution amid rising interest rates and geopolitical volatility (McKinsey). That said, Cohen & Steers' niche focus on semi-liquid products and public-private hybrid strategies-trends expected to unlock $6–$10.5 trillion in "money in motion" by 2030-positions it to differentiate itself in a crowded market (per the company announcement).

Investor Sentiment and Market Dynamics

Investor sentiment in alternative income markets remains polarized. While nontraditional equity and liquid alternatives attracted $92 billion in inflows in 2024, extending into 2025 (CoinLaw), digital assets and sustainability-linked strategies have emerged as dominant themes. For example, blockchain-based tokenization and ESG mandates are reshaping portfolio allocations, with 78% of investors prioritizing sustainability in 2025 (CoinLaw). Cohen & Steers' exposure to green infrastructure and resource equities aligns with these priorities, though its relatively modest AUM compared to peers suggests room for growth in these areas.

The normalization of interest rates has also spurred demand for private credit, a sector projected to reach $3 trillion in AUM by 2028 (CoinLaw). Cohen & Steers' foray into structured finance and infrastructure lending could benefit from this trend, particularly as institutional investors seek higher yields in a post-pandemic environment (McKinsey). Yet, challenges such as liquidity constraints and regulatory scrutiny-exemplified by the Corporate Transparency Act-remain risks for firms operating in this space (McKinsey).

Competitor Landscape and Future Outlook

Cohen & Steers operates in a highly competitive arena. While its AUM pales in comparison to giants like Blackstone and Brookfield, its specialized focus on alternative income-rather than broad private equity or hedge funds-offers a unique value proposition. For instance, the firm's $90.9 billion AUM in September 2025 reflects resilience in a market where commercial real estate (particularly office properties) and traditional energy assets face declining investor interest, according to a Bloomberg Intelligence survey.

Looking ahead, Cohen & Steers' strategic alignment with AI-driven asset management could enhance its competitiveness. The industry-wide adoption of AI for due diligence, compliance, and risk modeling is expected to reduce costs by 25–40% (CoinLaw), a capability the firm must leverage to scale efficiently. Additionally, its global presence in hubs like New York, London, and Singapore provides a foundation for expanding into emerging markets, where demand for infrastructure and renewable energy investments is surging (McKinsey).

Conclusion

Cohen & Steers' September 2025 AUM growth, though modest, highlights its strategic agility in navigating a fragmented alternative income market. By capitalizing on trends such as real assets, private credit, and sustainability, the firm is well-positioned to attract investors seeking diversification and yield in an era of macroeconomic uncertainty. However, its ability to scale amid fierce competition and regulatory headwinds will depend on its capacity to innovate-particularly in AI integration and ESG-aligned product offerings. As the alternative investment landscape evolves, Cohen & Steers' niche expertise may prove to be both a strength and a differentiator.