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A Look at North American-Based Alternative Asset Investment Consultants

by Dami Sogunro

  • 19 May 2011
  • PE
  • HF
  • RE
  • INF

The Preqin Investment Consultant database has over 190 profiles of active North American-based alternative asset investment consultants. The majority of these firms are based in the US, with a smaller number representing Canada. In the alternatives space, these firms provide a variety of services to their clients; including investment due diligence, manager search and selection, and performance measurement amongst others.

North American-based investment consultants make-up a substantial proportion (65%) of investment consultants active in the alternative assets industry on the Preqin database. Unsurprisingly, 99% of these firms offer their services domestically to institutional investors in alternative assets, while approximately one-third of investment consultants provide services to clients based in Europe (33%) and a similar proportion provide services to those based in Asia and Rest of World (30%). These alternative asset investment consultants typically advise institutional clients such as corporate investors, private and public pension funds, health organizations, foundations, and endowments.

Of these alternative asset investment consultants, 72% also advise clients on their investments in traditional asset classes by providing them with a host of general consulting services. Focusing on alternative assets, the private equity asset class is most commonly advised on by North American-based consultants (83%), followed by hedge funds (78%), private real estate (66%), whereas the infrastructure asset class is only covered by 39% of firms.

With an average of $16.7bn worth of alternative assets under advisement, just over half (51%) of these consultants provide both discretionary and non-discretionary services to their clients worldwide. Of those who only focus on one service type, 36% provide services on a non-discretionary basis only and 12% on a discretionary only basis.

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