Executive summary
Key takeaways
- A search firm should be evaluated for institutional investment expertise, process depth, independence, and execution capability.
- Prospective clients should understand who will do the work—not only who will make the sales presentation.
- Candidate access, conflicts, references, pricing, and deliverables should be compared through a consistent RFP.
- The search firm’s role should extend beyond distributing a questionnaire to supporting a documented fiduciary decision.
01
Why hire a search firm?
Consultant and OCIO searches have become more complex as providers offer a spectrum from non-discretionary advice to full investment discretion. Boards must evaluate business stability, people, philosophy, asset allocation, manager research, performance, risk, fees, operations, reporting, conflicts, and client fit.
A specialist search firm can help design the RFP, establish decision criteria, identify candidates, analyze responses, manage meetings, and document the process. This can simplify an important fiduciary decision while giving committees access to institutional investment expertise.
02
Evaluate the people and experience
Ask who will lead the engagement, who will perform analysis, and how much time senior professionals will devote. Experience should include direct work with institutions similar in size, asset mix, governance structure, and mandate—not merely general financial-services experience.
The team should understand both sides of the table: the needs of plan sponsors and committees as well as the investment and operating models of consultants and OCIOs. References should be relevant to the proposed assignment.
03
Evaluate the process and deliverables
A credible proposal should explain how the firm discovers the institution’s needs, builds a candidate universe, screens conflicts, structures questions, verifies information, scores responses, supports finalist due diligence, and helps the committee reach and document a decision.
Clarify exactly what the institution will receive: education sessions, market maps, RFP drafting, quantitative analysis, fee comparison, reference checks, site visits, finalist materials, contract support, implementation planning, and post-search evaluation. A vague process makes proposals difficult to compare.
04
Evaluate independence and market access
Institutions should ask whether the search firm provides investment consulting, OCIO, asset management, placement, or other services to prospective bidders. Any compensation, referral, data, or commercial relationship with candidates should be disclosed.
The candidate universe should be broad enough to fit the client rather than limited to familiar firms. Ask how the search provider maintains current knowledge of organizations, teams, capabilities, assets, minimums, fees, performance, and ownership changes.
05
Run a disciplined selection
Compare search firms through a consistent RFP, structured interviews, work samples, references, conflicts disclosures, and a clear fee schedule. The lowest price is not necessarily the lowest total cost if a weak process leads to a poor provider decision.
The right partner should make the process easier for the committee without taking the decision away from it. The outcome should be a defensible record of how the institution evaluated the market and selected the provider best aligned with its objectives.