Who is This Post For:
- Outsourced Chief Investment Officers (“OCIOs”) hoping to understand Leita’s process
- Fiduciaries evaluating the use of an OCIO search consultant
- Fiduciaries seeking a better way to approach OCIO due diligence
Key Takeaways:
- Leita’s approach as an OCIO search consultant starts before the RFP. By maintaining an up-to-date DDQ, we streamline search processes and build a clearer picture of provider capabilities over time.
- Our 2-part Due Diligence Questionnaire reflects what truly matters. Part 1 establishes alignment and fit; Part 2 offers a deeper dive when the timing is right.
- The resulting search process respects Committee time, minimizes busywork for providers, and maximizes value for clients — shifting focus from information gathering to decision making.
OCIO Search Consultant 101
As the OCIO model matures, with Cerulli projecting US OCIO assets to exceed $4 trillion in 2028, it also becomes more complex. Today’s OCIO landscape includes dozens of credible firms with wide-ranging models, capabilities, and approaches. For fiduciaries, the challenge isn’t finding an OCIO, rather, it’s finding one that fits their unique needs. More institutions are turning to OCIO search consultants like Leita to help evaluate and select the right provider.
OCIO search firms gather information, identify providers, and help fiduciaries make a choice with objectivity. But how firms structure search services, the level of investment expertise a search consultant can provide, and what firms prioritize when evaluating OCIO candidates can vary widely.
Leita believes that fiduciaries are best served when their search partner has an up-to-date, working understanding of the OCIO provider landscape; not just who’s out there, but how they work, and for whom. This drives us to prioritize ongoing due diligence.
We conduct ongoing due diligence with OCIO firms to track their evolution over time so that when a client initiates a search, the groundwork is already laid. For example, as part of our due diligence process, Leita conducts regular on-site meetings with OCIOs. We occasionally share field notes from these visits on LinkedIn, offering insights on firm differentiators and meetings. And our due diligence questionnaire (DDQ) sits at the heart of our process.
Evolving Beyond an RFP-Led Process
In Leita’s early months post-launch, we asked OCIOs and investment committees across the country: what’s working with the OCIO search process, and what isn’t?
The feedback was consistent:
- RFPs often ask for information that doesn’t help clients in finding the right OCIO
- OCIOs invest significant time in RFP responses, often without knowing if anyone is reading it
- Committees end up overwhelmed with data
Our answer: Build the due diligence file ahead of time.
In this post, we distinguish between an RFP and a DDQ, so let’s explain those terms right away.
Think of the DDQ as a living record. Much of the information it gathers — like regulatory status, firm structure, or service model — doesn’t change frequently. If you were a registered investment advisor with the SEC yesterday, you’re probably registered today, and you’ll likely be registered tomorrow. Re-answering that question in every RFP adds little value. Using a DDQ allows Leita to refocus the search process on gathering more actionable information on OCIOs and investment consulting firms.
Case Study: The VIP RFP
Our founder once ran a search for a very high-profile foundation tied to a world-famous person. Every OCIO invited to participate brought their A-game. Responses were thoughtful, customized, and personal. One OCIO put it plainly: “Everyone at our firm is watching this one.”
It was the single best set of RFP responses Anna has ever seen.
But most RFPs don’t get that kind of attention. Not because OCIOs don’t care about our clients, but because standard RFP workflows are designed to keep projects moving along in a short time frame. Answering 40 pages of boilerplate questions just doesn’t leave much time for true customization and engagement.
That experience stuck with Anna. It raised a fundamental question: What if we could redesign a search process that allows OCIOs to treat every client like a VIP?
Leita’s search process is designed to do exactly that. Give the OCIOs the same amount of time to complete a request for a client search, but let them use that time to dig into topics that clients really care about. There is still an RFP in Leita’s process, but it’s aimed at asking the right questions to help clients in selecting a provider that best matches their long-term needs. Paired with a comprehensive DDQ, the result is a process that puts clients first without sacrificing a prudent process and a comprehensive evaluation.
How Leita’s DDQ Works
We’ve structured the DDQ into two parts, each focused on a different kind of insight.
Part 1: Establishing Qualifications and Fit
Part 1 gathers basic firm information like assets under management and client profiles. This baseline information is a standard part of every request, be it a DDQ or an RFP.
The questions we ask in Part 1 also reflect what we’ve seen drive real OCIO hiring decisions by Committees. The questions prioritize governance structures, service models, and investment philosophy. We designed it to surface the kinds of distinctions that drive candidate selection, and to help clients get to a shorter, more relevant shortlist faster. Here’s an example: not every OCIO is equipped to manage direct private portfolios for a complex, large endowment. And not every organization needs that. Part 1 helps us identify potential OCIO and client alignment for the organizations we work with.
We want every OCIO out there to fill out Part 1. Haven’t done it yet? Request access here.
Part 2: A Deeper Dive into OCIO Execution and Differentiators
Not every provider needs to complete Part Two. It’s a deeper, more comprehensive dive, and we’ve intentionally reserved it for OCIOs who are either actively engaged in a Leita-led search or who have established strong baseline alignment with Leita’s typical clients through Part One.
Where Part One focuses on qualifications and fit, Part Two explores execution, differentiation, and infrastructure. Topics include: investment approaches and capabilities, performance, and a deeper dive on people and process. It also includes factors like operational infrastructure, risk controls, compliance, and cybersecurity.
Some of these topics, like cybersecurity or insurance limits, are essential but rarely drive OCIO hiring decisions. We don’t ask about them in Part One because clients don’t select an investment provider based on insurance limits. It is expected that an institutional OCIO has appropriate cybersecurity procedures and meets industry standards for insurance. But in the spirit of trust but verify, we do need to confirm that basic requirements are in place before seriously considering an OCIO for a client mandate, and Part Two gives us a structured way to do that.
Other questions in Part Two dig deeper into what sets a firm apart, the kinds of details that differentiate OCIOs once a search has moved beyond basic fit to identify a narrow, highly qualified subset of OCIO candidates. Part Two is a heavy lift for OCIOs to complete, and we recognize that not every firm is likely to benefit from investing that time upfront. That’s why we don’t position Part Two as an expectation. Instead, think of it as the next step for the right firms, at the right time.
The result is a process that’s thoughtful, streamlined, and focused on fit. It reduces the burden on providers. It respects Committee time. And it helps surface the right partners for clients faster to allow for a process designed to let Investment Committees make a confident, informed decision.
Leveraging a Best-in-Class RFP Tool
We host our DDQ on Responsive.io — a secure RFP platform used across the industry. This allows OCIOs to save responses and provides a streamlined way to update information over time. For our Leita team, structuring the data in this way allows for smarter, more comprehensive analysis across providers as well as for providers over time.
A Clear Way to Start the Conversation
Leita’s DDQ is a reflection of how we think about governance, alignment, and long-term fit as an OCIO search consultant assisting fiduciaries with outsourced chief investment officer evaluations.
If you’re an OCIO provider interested in sharing more about your approach, or a fiduciary seeking to hire an OCIO, we are always happy to connect.
