Learn and remember For individual boutiques and prospective boutiques there are some simple lessons. The first is to do your research and seek quality advice before making a decision on whom to partner with. It is surprising how few investment managers, who pride themselves on the quality of their market and security research, fail to do adequate research prior to committing to a business partner.

By definition, the multi-boutique providers have done many boutique deals whereas an investment professional will rarely do more than one. The odds are therefore stacked in favour of the multi-boutique provider when they sit down to agree terms with a new boutique.

There are multiple variations to the boutique model from the QIC-style single brand, 100-per- cent institutionally owned to the Challenger multi-brand majority investment professional-owned. Different multi-boutique providers offer different services of varying quality and at very different prices.

Shareholder and distribution agreements between the investment professionals and the institutional backer also show large variation from one provider to the next. The number and range of boutiques already in the multi-boutique provider’s stable should also be a key consideration.

Finally, and possibly most importantly, is the culture of the business you are partnering with. Building a successful fund- management business regardless of the model requires patience, commitment and a shared business philosophy from all stakeholders. Success will only be achieved if the underlying boutique and the institutional partner have a true partnership approach and similar time horizons.