Outsourced CIO Firms
Has anybody every worked at an Outsourced CIO firm (OCIO) and have experience on any exit opportunities? ex., Private equity or Asset Management.
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Hi anonymous0101, don't worry, the WSO Monkey Bot is here.... I'm hoping one of these links will help find your answer:
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Yeah I have been interning at an investment consultant/OCIO for the past 6 months. PM me
Been working at one of the biggest investment consulting/OCIO firms for the last 3yrs. Happy to answer any questions here or PM. In my experience, the majority of exits are to M7 MBA. Seems like the top MBAs really value the experience working with institutional investors. Otherwise, common exits include PE FoFs or into specific asset classes (# people exiting to VC increasing...)
It's interesting work, albeit slower pace than more "traditional" finance roles
Can you describe what an investment analyst would be doing at a OCIO and the career progression and comp for analyst and higher? Interested in knowing where you work as well if you don't mind me asking?
Not going to give specific name, but think SSGA/Mercer/Aon/Meketa - more big names are starting to move into the space as well. Blackrock, JPM, and GS all expanding their OCIO teams.
The work can vary quite a bit depending on the profile of the client, but the main responsibilities = performing due diligence on top-tier managers for every asset class of the portfolio. I.e. finding long-only managers for Equities, Fixed Income, and Private Investments (PE, VC, Priv Credit, etc.). My firm has investment teams and we can use our own products, which usually fills up some Equity/Fixed income buckets. Most of my time is spent looking for new ideas for the portfolio and creating investment memos (basically ER research reports on managers instead of securities). This is the big difference here - OCIO invests in managers not individual securities.
Comp is on the lower end of the scale. My offer out of college was $70k with low annual bonus. I will note though, the exposure is awesome. You get to have meetings with some pretty big name investors and the people you work with are bright. Work/life balance is very real. In my first year I worked ~55-60 hours/week on average, mid 40's during quiet times, and 65-70 during crazy times (rare) and rarely worked a weekend.
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Hey Analyst 1, would love to get your thoughts on my situation. I’m mid 20s, finished up CFA, and have just under 3 years of private wealth experience (mostly families, but some institutions). OCIO in an institutional management setting is my dream goal. What do you think is a good action plan? Really, really appreciate any suggestions you may have.
Take a look at a full list of OCIO firms - Skorina publishes one that I think is available publicly - just search Skorina, OCIO firms. That is a good starting point to get a lay of the land. OCIO buyers guide is another good one - you might have to sign up, but can get some more detailed info on at least some of the larger firms. From there, you know the drill, take a look for open roles. Depending on where you are at - you may have run into some of them at the institutional level, we run into some PWM firms depending on the state and size (generally smaller).
In your case I'd focus on really articulating your experience at the PWM - what did you actually do, how will that translate into whatever role you want. CFA will help - most of our analysts have it, or are getting it. I'd also make sure you know what exactly you want to do - is it purely investments as a manager research analyst covering, say, fixed inocme? Do you want to do more high level, economic or asset allocation type research? Maybe it's a client portfolio manager (or consultant.. whatever they decide to call themselves) where you both work with clients, but are also involved in building out the specific portfolio - using the managers, ideas, etc. generated from the investment team. I'd recommend, as you talk to different firms, get a sense for their layout and how the 'work' so to speak flows.
Analyst may have some more insightful or helpful comments - but those are a few off the bat.
Thanks addinator for the extensive response. Right now my role is quite literally, everything — asset class research, portfolio construction, manager diligence, optimization, etc. As I apply to these firms, is it best if I just highlight the manager piece and just focus on that only?
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