U.S. Outsourced Chief Investment Officer Function 2024
Uncovering Opportunities for Growth
Fees, Market Sizing, and Report Standardization
- Identify factors that are most important to different client types in an OCIO relationship
- Examine OCIO providers, industry consolidation, search consultant influence, and distribution strategies used by asset managers building relationships with OCIO providers
- Explore strategies used to retain OCIO assets when replacement searches or re-tenders are on the horizon
Buy Now
Summary
Explore the evolving outsourced chief investment officer (OCIO) market, including market sizing, demand and anticipated growth across client segments, types of outsourcing arrangements, functions outsourced, obstacles to uniformity across providers (i.e., performance track record and fees), and reasons why institutions are outsourcing.
A Note from the Author
Acquisition and Consolidation Are Reshaping the OCIO Industry
Christopher Swansey
Associate Director
Bio →
Christopher Swansey
Associate Director
Christopher is an associate director on the Institutional team where he supports multiple reports annually, including the annual outsourced chief investment officer (OCIO) report, and various strategic consulting projects throughout the year. He also regularly contributes to The Cerulli Edge—Institutional Edition, The Cerulli Edge—U.S. Edition, and The Cerulli Edge—U.S. Monthly Product Trends.
Christopher was a Senior Analyst at Mercer working within their executive compensation practice before joining Cerulli in 2018.
Full biography here.
The outsourced chief investment officer (OCIO) industry is poised to enter the next phase of the consolidation lifecycle, entailing high levels of acquisition activity and consolidation. Here are some of the key trends we’re seeing:
- Large-scale OCIO providers, those above the 90th percentile in AUM, account for 61% of global OCIO assets, up from 49% in 2017, due in part to consolidation of competitors.
- Registered investment advisors (RIAs) have increasingly acquired OCIO providers in order to expand their institutional coverage as well as gain access to better alternative asset capabilities for their private wealth clients.
- As more firms become acquired by outside entities, a majority (67%) of OCIO search consultants indicate that ownership changes are driving increased level of replacement search activity compared to the levels they have experienced throughout the past two years.
- As large providers gain scale and smaller providers entrench themselves within niche markets, middle-market providers reliant on building scale may struggle to compete for mandates. Acquisitions from outside entities such as RIAs and private equity firms could lend resources to these providers that enable them to gain scale.
For more on the growth opportunities and implications of consolidation, access our report, U.S. Outsourced Chief Investment Officer Function 2024.
Contact us
Want more information?
Learn more about this report and related Cerulli research.
Contact Us
Included with Purchase
Methodology
Each report is lead authored by a senior Cerulli analyst with significant industry experience. The report incorporates qualitative and quantitative inputs, based on Cerulli’s proprietary research process. For more on our research process, click here.
Executive Summary
Get the most important report findings distilled in an easy-to-understand and highly visual format before you begin your journey through the report or use it as a tool for senior leadership.
Interactive Report Dashboard
Access consolidated data from multiple report exhibits in a single comparative view. Flexibly build your view of data with customizable filters and share the results in a format that meets your requirements.
Analyst Support
Got a question? Our analysts are available to help you interpret and analyze key findings as well as provide their perspective on industry trends.
Data Behind the Report
Data is the foundation of our reports. Each study contains nearly 100 exhibits, available to buyers in Excel format. Extract and explore Cerulli’s data and analysis your way.
Digital Access
Access your reports digitally anytime, anywhere, on any device through our client portal.
You May also be interested in:
- Annual report
- The Cerulli Edge
CUSTOM RESEARCH & STRATEGIC CONSULTING
Cerulli for Consulting
Understand where to allocate resources to achieve your objectives. We can help you determine which initiatives are likely to be successful and those that may not achieve the desired effect. In an increasingly competitive market, our objectivity and experience can help you to advance your firm’s unique strengths.