Shrinking institutional assets under management, consolidation among third-party allocators, and the increased adoption of the 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. According to our research:

• Over the last decade and a half, Cerulli has tracked more than 50 consolidations in the consulting industry. As a result, the overall number of investment consultants declined from more than 100 in 2010 to 58 firms at the time of this report.

• Investment consulting industry 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. Managers are having more informal in-person meetings, conducting virtual calls, and providing targeted value-added content and services to foster relationships with allocators.

As the investment consultant industry continues to consolidate, Cerulli recommends distribution teams track M&A activity and meet with those firms to understand how the entities will operate in the future. Will they continue to operate as separate entities, with potential opportunities for collaboration, or will they be fully integrated? Understanding each organization’s structure and manager research process will help inform their consultant coverage models.

Access more in The Cerulli Report—U.S. Institutional Distribution Dynamics 2025. In its inaugural edition, this report provides an overview of the shifting institutional market and sizing of the addressable market, broken down by direct-sold and third-party-intermediated assets.