As we laid out in our April blog, ‘Asset owners have been active in the first half of the year, allocating funds to specialty managers who have proven the ability to generate persistent alpha. However, niche solutions and asset classes continue to be difficult to scale. As a result, for the first time in over a decade, these niche-driven firms have an advantage over the very largest asset gathering firms in profitable AUM growth. Our recruiting partnerships reflect this shift, as our clients are increasingly smaller and more nimble firms defined by unique cultures and specific market-related skills. Their growth prospects are strong.’
These trends have continued throughout the year proving that the divide between successful firms and those who continue to struggle is growing. What an interesting lead into 2021. In our discussions with a wide range of firms, an incredible layer of complexity has been added to the current planning cycle for next year. We hope to get a chance to speak with more of you during Q4. By Julie Segal