Shrinking institutional assets under management, consolidation among third-party allocators, and the increased adoption of the outsourced chief investment officer (OCIO) model are contributing to fee pressure and fewer traditional mandates for asset managers. In a competitive landscape, distribution professionals and relationship managers are seeking ways to differentiate their firms and establish meaningful connections with clients and consultants, according to The Cerulli Report—U.S. Institutional Distribution Dynamics 2025.

Over the last decade and a half, Cerulli has tracked more than 50 consolidations in the investment consulting industry. As a result, the overall number of investment consultants declined from more than 100 in 2010 to 58 firms in 2025. Assets remain highly concentrated, with the top-five providers advising on 70% of worldwide assets, up from 64% in 2010.

In a consolidated market, securing in-office meetings with investment consultants and asset owners has become increasingly difficult. Cerulli’s research finds that managers are having more informal in-person meetings, conducting virtual calls, and providing targeted value-added content and services to foster relationships with allocators.

“In today’s complicated and competitive environment, value-added services can be the deciding factor in winning a mandate,” says Michele Giuditta, director. “Institutional asset owners identify access to investment decision makers (90%) and access to client-type subject matter expertise (77%) as two of the most useful ancillary services that asset managers provide to their organization,” she adds.

According to Cerulli, one-third of asset managers have recently added or plan to add portfolio specialist/client portfolio manager staff to support institutional sales and service efforts. Examples of expertise range from deep client-specific knowledge, such as insurance channel expertise, to product knowledge, such as alternative investments.

While employing these tactics may help distribution teams get their foot in the door, maintaining relationships will require deliberate effort. According to Cerulli, nearly all (93%) of distribution professionals emphasize the importance of strong client service and proactive communication, particularly in the event of negative developments.

“Asset owners cite poor client service as one of the top-five reasons for ending a relationship with an asset manager,” says Giuditta, “Holding client check-in calls to gather feedback on the relationship and to understand the organization’s top issues and needs is essential.”

As the investment consultant industry continues to consolidate, Cerulli recommends that distribution teams track M&A activity and meet with those firms to understand how the entities will operate in the future, particularly given the recent convergence of the institutional and wealth management spaces. Understanding each organization’s structure and manager research process will help inform their consultant coverage models, foster resource sharing, and strengthen relationships.