Case Studies

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Institutional Fixed-Income Management

Turned Around Business Development Function, Raising $2 Billion (50% Starting Aum) In 18 Months

Project goal:
To help an institutional investment management firm grow its stagnant business.

Business context:
The organization's investment performance was strong; however, its assets under management had plateaued. The business development group was plagued with internal conflict and poor results, and the investment professionals were overly involved in the non-investment decision-making process.

Approach:
Margolis Advisory Group first wanted to understand the complexities and intricacies of the firm's structure and products to determine the root of the business development shortcomings. Careful research, analysis and interviews with internal and external constituencies revealed that culture, staffing and group structure, resources, and decision making and incentives all needed adjustments.

Solution:
Concrete steps were recommended, and Margolis Advisory Group was selected to serve as Interim Head of Sales.

Outcome:
One and one-half years after beginning the diagnostic project, a restructured, cohesive group has raised approximately $2 billion of new assets under management (representing over 40% of the initial total assets), and Margolis is still serving its client. Certain firm policies and approaches have been improved to continue to drive this success, with many of them being adopted at a firm-wide level.

Lessons learned:
The ability to raise assets and retain clients requires a well thought-out plan, proper leadership, staffing and structure, and incentives to perform. Also necessary are effective relationships and strong communication within the entire firm, and delegation of responsibilities to those closest to the job at hand.