Advising on operating model redesign for an asset manager

Sionic asset management experts advise on operating model refresh supporting European asset managers’ ambition for global growth and market leading approach.

The challenge

When a European asset manager displays ambitions to diversify globally, while also adding scale, it needs an operating model to match the strategy.

For all but the very largest players, achieving this breadth and depth of capability in a cost-efficient way is a significant challenge. Outsourcing operations is a possible solution, with the added advantage of allowing for increased management focus on revenue generation.

A leading asset management firm asked us to lead an operating model review, exploring the viability, cost and benefits of outsourcing both middle and back office support functions.

Our approach

We worked closely with the asset management client to develop a tailored approach. We devised a multi stage process to guide the client from idea through to the signing of contracts with a preferred provider.

We conducted a forensic review of the existing operations platform, capabilities and cost, analysing the existing technology and resource profile.

From our analysis of the client operating model, we could assess the feasibility of outsourcing – leveraging our market knowledge and the comparative information gleaned from our analysis of the client operating model.

We then held a multi-stage supplier selection process, guiding the client through initial engagement, then capability and commercial assessment.

Once a preferred provider had been selected, we led the commercial aspects of contract negotiation.

Our impact

Our team possessed a deep understanding of the complex challenge faced by our client. By applying industry best practice, and by reviewing the service provider landscape, we gained valuable insights we used in the design of a market-leading operating model.

Our experience working through similar problems with other asset management firms allowed us to lead their team through an unfamiliar set of challenges, providing structure, probing on key issues and helping to obtain optimal bid outcomes both from a scope and cost perspective. We were also able to aid the client in obtaining appropriate contractual protections.

Our experts