The OCIO Industry is Substantially Larger than Previously Estimated

Chestnut's New OCIO Provider List and Market Estimate are First Steps Toward an Industry Standard for OCIO AUM

NAPLES, Fla., Jan. 8, 2025 /PRNewswire/ -- Due to the industry's current lack of standards, the size and scope of the current OCIO (Outsourced Chief Investment Officer) marketplace are not at all clear today. As a first step toward creating an industry standard for OCIO AUM, Chestnut has created a new OCIO provider list, current marketplace estimate and market forecast, all detailed in the firm's OCIO Is Bigger Than You Think [hyperlink to article on website, ungated] article, published today.

Chestnut estimates global OCIO AUM at $4.79 trillion today, almost 25% higher than the current average estimate. This OCIO marketplace consists of services provided by the 134 firms on Chestnut's new 2024 OCIO provider list. Chestnut's new forecast of over $7.3 T in 2029 OCIO AUM implies a robust 8.9% CAGR over the next 5 years globally.

"There are many different types of mandates and clients included in the 'OCIO AUM' reported by providers today," remarks Amanda Tepper, Managing Partner. "Our new definition of an OCIO mandate is a first step toward establishing an industry standard for OCIO AUM."

The Chestnut Solutions Institute is convening a working group of Institute Members and select other investment solutions industry participants to create a proposed definition of OCIO AUM. Any firm interested in participating in this working group can contact the Institute at [email protected].

Chestnut has also created a taxonomy for different OCIO provider types which it uses to categorize the providers on its new 2024 OCIO provider list. "Our new OCIO provider taxonomy highlights capabilities that are often overlooked and underappreciated, yet are critical to the proper alignment with clients and the likelihood of success of an investment program," says Ravi Venkataraman, Managing Partner. "While other, more mature investment industry segments enjoy widely accepted standards and norms creating clarity and investor trust, the OCIO industry today is not well-defined or widely understood." 

The Solutions Scoop: A New Podcast from Chestnut

Chestnut is pleased to announce The Solutions Scoop, a podcast that dives deep into the investment solutions and OCIO businesses. Solutions Scoop episodes are hosted by Ravi Venkataraman and Amanda Tepper, co-founders of the Chestnut Solutions Institute, and feature discussions from the Institute's popular virtual event series as well as exclusive executive conversations with senior leaders across the solutions industry. On the show you will hear the Scoop from senior leaders from investment management, consulting, asset owners and other thinkers in the investment ecosystem.

All episodes - including the latest, The Shape of Solutions 2025: Investor Roundtable - are available on Chestnut's Podcast site, Apple Podcasts, Spotify, Amazon Podcasts, YouTube and Podcast Index, as well as on Chestnut's website here. If you are a senior investment solutions leader and/or investor and are interested in being on our show, please contact us.

About Chestnut Advisory Group and The Chestnut Solutions Institute

Chestnut Advisory Group ("Chestnut") is a boutique, practitioner-led management consulting firm dedicated to asset managers and investment solutions providers. Since its founding in 2013, Chestnut has provided bespoke advisory services in the areas of strategy, products and solutions, go-to-market strategy, M&A, custom market research and distribution leadership coaching and training.

The Chestnut Solutions Institute is an independent forum for investment solutions providers (OCIOs, asset managers, investment consultants) and their partners, dedicated to advancing the future of the investment solutions industry. Institute membership is at the firm level.

For more information, please visit www.chestnutadvisory.com or email [email protected].

Media Inquiries:
For additional information regarding this report or to learn more about the Chestnut Solutions Institute, please email [email protected] or call us at (941) 212-0298.

SOURCE Chestnut Advisory Group