Cerulli research finds endowment assets are expected to grow 7.9 percent annually over the next five years, the highest growth rate of any institutional channel. For traditional asset managers to capture the growth of the endowment channel, they will need to be highly targeted in their approach to winning mandates, according to the latest Cerulli Edge — U.S. Institutional Edition.
For many traditional asset managers, large endowments (those with more than $1 billion in assets under management [AUM]) represent the best opportunity. Large endowments account for just 4.5 percent of total endowments in the United States; however, they collectively manage roughly 78 percent of the assets in the channel.