MSCI Inc. is a leading global provider of investment decision support tools, including indexes, portfolio risk and performance analytics, and corporate governance products. The company's business model is primarily subscription-based and asset-based, generating recurring revenue from asset managers, banks, wealth managers, and pension funds that license its data and methodologies. MSCI operates through four main segments: Index, Analytics, ESG and Climate, and All Other - Private Assets. The Index segment is the largest revenue driver, accounting for approximately 56% of total revenue in 2024, generating fees from ETF providers and mutual funds that use MSCI indexes as benchmarks or the basis for passive investment products. The Analytics segment (24% of revenue) provides risk management and performance attribution software, while the ESG and Climate segment (11%) offers data and ratings to help investors integrate environmental, social, and governance factors into their portfolios. The Private Assets segment (9%) focuses on real estate and private capital data. Geographically, MSCI operates globally, serving clients in over 80 countries. The company holds a dominant competitive position in the index licensing industry, benefiting from high switching costs, a strong brand reputation, and the secular growth of passive investing.
