Asset management takeover activity will recover from a dismal first half by increasing over the rest of the year and into 2010, according to new research, as private equity firms and cash-rich fund managers gain confidence amid rising markets.

Robert Lee and Larry Hedden, analysts at investment banking boutique Keefe, Bruyette & Woods, said that because capital markets have stabilised, and fund houses' assets have rebounded since the market upswing in March, "we expect M&A activity to pick up over the balance of the year and into 2010".