Private wealth clients increasingly turning to outsourced chief investment officers

Author Marcus Baram

Marcus Baram is a contributing editor at Crain Currency, where he covers the intersection of finance and politics. Prior to joining Crain Currency, Baram was a staff writer at Fast Company and an editor at Huff Post. He has also written for outlets such as The New York Times, The Atlantic, and Vice. Baram is an expert on economic policy and has a deep understanding of the ways in which politics shapes the global financial system. In his role at Crain Currency, he brings a unique perspective to the complex and ever-evolving world of finance. With his keen analysis and clear writing, Baram helps readers make sense of the important issues impacting the economy today.

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Feb 12, 2024

10 months ago

The demand from private wealth clients for outsourced chief investment officers (OCIOs) has grown in recent years due to market volatility, recruiting challenges and higher inflation, according to The Cerulli Report—U.S. Outsourced Chief Investment Officer Function 2023.

The high interest is also due to the various benefits of using OCIOs — accessing higher-quality investments and reduced cost compared with an in-house investment team.

Though the private wealth sector is the smallest segment of OCIO clients, it is projected to grow faster than other sectors — 16% annually through the end of 2027. “Given that the private wealth market is growing faster than the institutional market, the rate of projected OCIO adoption is not a surprise,” said Cerulli director Laura Levesque.

“Wealthier clients are consistently seeking institutional-quality investment opportunities as well as the extensive due diligence, special knowledge and skill that OCIOs offers.”

Risk analytics is the most important service offered by OCIOs, according to the report, followed by investment education and access to investment decision-makers.

Author Marcus Baram

Marcus Baram is a contributing editor at Crain Currency, where he covers the intersection of finance and politics. Prior to joining Crain Currency, Baram was a staff writer at Fast Company and an editor at Huff Post. He has also written for outlets such as The New York Times, The Atlantic, and Vice. Baram is an expert on economic policy and has a deep understanding of the ways in which politics shapes the global financial system. In his role at Crain Currency, he brings a unique perspective to the complex and ever-evolving world of finance. With his keen analysis and clear writing, Baram helps readers make sense of the important issues impacting the economy today.