Shrinking institutional assets under management, consolidation among third-party allocators, and rapid adoption of the outsourced chief investment officer (OCIO) model are all intensifying fee pressure and shrinking the pool of traditional mandates available to asset managers, according to The Cerulli Report—U.S. Institutional Distribution Dynamics 2025.  

Over the past 15 years, Cerulli has tracked more than 50 mergers and acquisitions in the investment consulting industry, reducing the number of consulting firms from more than 100 in 2010 to just 58 in 2025. At the same time, assets have grown more concentrated, with the top five consultants now advising on about 70% of worldwide institutional assets, up from 64% in 2010. 

In this consolidated environment, securing in-office meetings with consultants and asset owners has become more difficult. Managers are responding by leaning on informal in-person interactions, virtual calls, and highly targeted value-added content and services to stay visible and relevant with key decision makers. “In today’s complicated and competitive environment, value-added services can be the deciding factor in winning a mandate,” said Michele Giuditta, director at Cerulli.  

Asset owners point to access to investment decision makers (90%) and client-type subject-matter experts (77%) as the most useful ancillary services, and about one-third of asset managers have recently added or plan to add portfolio specialists or client portfolio managers to support institutional sales and service. 

While these tactics may open doors, long-term success will hinge on consistent client service and proactive communication, especially during periods of negative news. As consultant consolidation continues and institutional and wealth channels converge, Cerulli recommends closely tracking M&A activity and engaging early with newly combined firms to understand how their needs, processes, and platform requirements are evolving.