Institutional investors concentrate assets with valued strategic partners, research finds

Written by Adam Cadle

06/05/2025

Institutional investors are concentrating a huge share of their assets with large and highly capable asset managers they consider strategic partners, new research from Coalition Greenwich has found.

Globally, 59% of investors employ asset managers that they consider “strategic partners”. For these investors, asset managers viewed as strategic partners now manage 62% of their institutional assets, an average that spans a high of 71% in the UK and a low of 51% in the US.

US asset owners typically maintain relationships with four strategic partners, while institutional investors in other markets usually have two to three strategic partners.

Half of institutional investors overall and roughly 70% in Continental Europe say they prioritise strategic partners when awarding new mandates. Slightly more than half of institutional investors give strategic partners extra time to turn things around during periods of underperformance, including 31% who give strategic partners an additional year.

“Managers that achieve the strategic partner role have more opportunities to grow the relationship,” Mark Buckley, global head of investment management at Crisil Coalition Greenwich, said.

“For example, more than 40% of institutions in North America and Europe provide their strategic partners with access to senior decision makers that are normally off limits for other asset managers.”

In the eyes of institutional investors, three things define a strategic partner. First, to be considered a strategic partner, a manager must take the time to develop a deep understanding of the institution’s goals and challenges. Next, the manager must have the broad capabilities to act on that understanding to provide advice and other forms of added value. Finally, managers must have trusted relationships—not just with the investment team, but across all the institution’s functional areas.

In addition, roughly 40% of institutions using strategic partners rely on these managers for general education and knowledge transfer about investment topics, and almost the same share asks strategic partners for advice on risk management.

“Thought leadership plays an important role in these strategic relationships,” Buckley said.

“That’s especially the case in the US, where institutional investors value thought leadership on specific asset classes and access to the manager’s economists, portfolio managers and other thought leaders.”

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