A foundational guide to understanding the ecosystem we sell into—who the players are, how they make money, and where Osmosis fits.
Imagine you're in capital markets. You're an asset manager. What's your job?
Your job is to get money and invest it well.
That's it. Everything else flows from this. But here's the thing: these are actually two different jobs, often done by different people with different skills and incentives.
Convince allocators (pension funds, endowments, family offices, sovereign wealth funds) to give you their capital to manage.
This is fundraising. This is where Osmosis plays.
Put that capital to work—in public equities, private markets, lending, infrastructure, real estate—and generate returns.
This is portfolio management.
Capital markets exist to move money from people who have it to places where it can grow. Here's the basic flow:
We help with that first arrow—the relationship between allocators and asset managers. Specifically, we help asset managers understand what allocators are thinking, saying, and doing so they can raise capital more effectively.
Allocators are institutions that have massive pools of capital they need to invest. They don't invest it all themselves—they give chunks of it to asset managers who specialize in different strategies.
| Allocator Type | What They Are | Examples | Typical AUM |
|---|---|---|---|
| Public Pension Funds | Retirement money for government employees | CalPERS, NY State Common, Texas Teachers | $50B - $500B+ |
| Endowments | University and foundation investment pools | Harvard, Yale, Stanford, Gates Foundation | $10B - $50B |
| Sovereign Wealth Funds | National investment funds (often oil money) | Norway GPFG, Abu Dhabi ADIA, Singapore GIC | $100B - $1T+ |
| Family Offices | Wealth management for ultra-rich families | Walton Enterprises, Bezos Expeditions | $1B - $100B |
| Insurance Companies | Investing premium income | MetLife, Prudential, AIG | $100B - $500B |
These allocators are constantly talking—at conferences, in interviews, in regulatory hearings. They're signaling what they want to invest in, which managers they like, and where they see opportunity. That spoken content is gold for asset managers trying to raise from them.
Asset managers have a "view of the world"—a thesis about the best way to turn a dollar into more dollars. Here are the main approaches:
Buying stocks in publicly traded companies. Can be passive (index funds) or active (stock picking). Most liquid, most transparent.
Players: Fidelity, BlackRock, Citadel
Buying private companies (or taking public ones private), improving them, and selling. Illiquid—money locked up for years.
Players: Blackstone, KKR, Apollo
Lending money directly to companies (instead of buying equity). Predictable income streams. Growing fast.
Players: Ares, Blue Owl, Golub
Investing in early-stage startups. High risk, potentially huge returns. Very relationship-driven.
Players: Sequoia, a16z, Benchmark
Investing in physical assets—bridges, airports, data centers, power plants. Long-term, stable returns.
Players: Brookfield, Macquarie, Global Infrastructure Partners
Buying and managing properties—office, retail, residential, industrial. Income from rent + appreciation.
Players: Blackstone RE, Starwood, Prologis
| Type | What They Do | Key Players | Fees |
|---|---|---|---|
| Long-Only / Traditional | Buy stocks, hold them. Benchmark against indices. | Fidelity, T. Rowe Price, Capital Group, Wellington | ~0.5-1% mgmt |
| Long-Short / Hedge Funds | Buy stocks they like, short stocks they don't. Market-neutral or directional. | Citadel, Millennium, Point72, DE Shaw | 2/20 (often 1.5/15-20) |
| Quantitative / Systematic | Algorithmic trading, statistical arbitrage. | Renaissance, Two Sigma, DE Shaw, Citadel | 2/20+ (top quants charge more) |
| Type | What They Do | Key Players |
|---|---|---|
| Investment Grade | Corporate bonds, government bonds. Safe, steady. | PIMCO, DoubleLine, Western Asset |
| High Yield | Junk bonds. Higher risk, higher return. | Oaktree, PGIM, Ares |
| Emerging Market Debt | Government and corporate bonds from developing nations. | Ashmore, PIMCO, GMO |
| Type | What They Do | Key Players | Fund Life |
|---|---|---|---|
| Buyout / LBO | Buy controlling stakes in mature companies, improve operations, sell. | Blackstone, KKR, Apollo, Carlyle, TPG | 10-12 years |
| Growth Equity | Minority stakes in fast-growing companies. Less leverage than buyout. | General Atlantic, TA Associates, Summit | 10-12 years |
| Venture Capital | Early-stage startups. High risk, power-law returns. | Sequoia, a16z, Benchmark, Founders Fund | 10-12 years |
| Type | What They Do | Key Players |
|---|---|---|
| Direct Lending | Loans directly to middle-market companies (bypassing banks). | Ares, Blue Owl, Golub, HPS, Owl Rock |
| Distressed / Special Sits | Buy debt of troubled companies at a discount. | Oaktree, Apollo, Elliott |
| Mezzanine | Subordinated debt, often with equity kickers. | Golub, Crescent, Audax |
Buy/develop/manage properties (office, industrial, multifamily, retail).
Players: Blackstone, Starwood, Brookfield, Prologis
Bridges, airports, toll roads, data centers, renewables. Long-duration, stable cash flows.
Players: Brookfield, GIP, Macquarie, Stonepeak
Oil & gas, mining, timber, agriculture.
Players: EnCap, NGP, Quantum Energy
Buy existing LP stakes from LPs who want early liquidity.
Players: Lexington, Ardian, HarbourVest, Blackstone Strategic Partners
LPs invest directly alongside the GP in specific deals. Usually no/reduced fees.
Not a manager type—it's a product GPs offer
Invest in other funds. Access + diversification for smaller LPs.
Players: HarbourVest, Hamilton Lane, Adams Street
Public markets, retail-facing. Money on volume at thin margins. Less relevant for Osmosis.
| Firm | AUM | Known For |
|---|---|---|
| BlackRock | ~$10T | Largest in world. iShares. Aladdin. |
| Vanguard | ~$8T | Index fund pioneer. Lowest costs. |
| Fidelity | ~$4.5T | Active + passive. Strong 401(k). |
| State Street | ~$4T | SPDR ETFs. Custody. |
| Capital Group | ~$2.5T | American Funds. Long-term active. |
Private markets focus. Dedicated IR teams. Our sweet spot.
| Firm | AUM | Key Strategies |
|---|---|---|
| Blackstone | ~$1T | PE, RE, Credit, Infra |
| Brookfield | ~$900B | Infra, RE, Renewables |
| Apollo | ~$650B | Credit-heavy, PE, Insurance |
| KKR | ~$550B | PE, Credit, Infra |
| Ares | ~$425B | Credit, credit, credit |
| Carlyle | ~$425B | PE, Credit, Global |
They have dedicated IR/Capital Formation teams. They're constantly fundraising across products. They care deeply about allocator intelligence.
Examples: Sequoia (VC), Silver Lake (tech buyout), PIMCO (fixed income), Oaktree (credit)
Examples: Blackstone, Apollo, KKR, Carlyle; Citadel, Millennium (hedge)
"One-stop shop" — one relationship, access to multiple strategies
One IR team serves 10+ products. Spreads fixed costs.
LP in your PE fund? Pitch them credit. Warm lead.
Star PM wants new strategy? Do it in-house vs. leaving.
Credit struggling? PE carrying the load. Smooths cycles.
Can afford to build wealth channel infrastructure.
Institutional market is crowded. Retail is a $30T+ opportunity. Platforms are investing heavily.
BREIT (real estate), BCRED (credit), perpetual infra fund. Pioneered retail alternatives.
Retail credit products via Athene insurance platform.
Interval funds, partnerships with wirehouses (Morgan Stanley, etc.).
Expanding wealth distribution across strategies.
These firms have wealth distribution teams separate from institutional IR. Different personas, different needs. The wealth channel requires different products (semi-liquid, lower minimums) and different relationships.
As alternatives go retail, the universe of "allocators" expands beyond pensions and endowments to include wirehouses, RIAs, and private banks. More conversations to capture, more intelligence to deliver.
| Type | Description | Allocation to Alts | Decision Speed |
|---|---|---|---|
| Public Pension | Retirement $ for govt employees | 20-40% | Slow. Boards, consultants, politics. |
| Corporate Pension | Retirement $ for corporate employees | 15-30% | Medium. Fewer stakeholders. |
| Endowment | University/foundation pools | 40-60% | Medium-fast. Sophisticated, lean. |
| Sovereign Wealth Fund | National investment funds | 30-50% | Variable. |
| Family Office | Ultra-HNW family wealth | Highly variable | Fast. One decision-maker. |
| Insurance Company | Investing premiums | 10-25% | Slow. Regulatory constraints. |
Advise LPs on manager selection. Conduct due diligence. Write recommendations. Many pensions won't invest without consultant approval.
Key players: Cambridge Associates, Mercer, Aon, Wilshire, Aksia, Albourne
Why they matter: Gatekeepers. A negative consultant view can kill a fundraise. They speak publicly—prime Osmosis content.
Go beyond consulting—actually manage the LP's portfolio. Full discretion to hire/fire managers.
Key players: Cambridge, Mercer/Aon OCIO, Commonfund, Investure, TIFF
Why they matter: One OCIO relationship = access to dozens of underlying LPs. They consolidate allocator power.
Help GPs raise capital. Essentially investment banks for fundraising. Introductions, roadshow logistics. Take 1-2% of capital raised.
Key players: Park Hill, Evercore, Lazard, Campbell Lutyens, Eaton Partners
Used by first-time funds, new geographies, or when GP lacks IR capacity.
Getting on the Cambridge or Mercer approved list is a huge deal for GPs. Consultants see everything—which GPs are raising, which LPs are allocating, where flows are going. GPs spend enormous energy cultivating these relationships.
| Player | What They Do | Key Names |
|---|---|---|
| Fund Administrators | Back-office: NAV calc, investor reporting, compliance | Citco, SS&C, Apex, Alter Domus |
| Prime Brokers | Serve hedge funds: leverage, securities lending, execution | Goldman, Morgan Stanley, JPM |
| Custodians | Hold assets, settlement | State Street, BNY Mellon, Northern Trust |
| Law Firms (GP-side) | Fund formation, deal docs | Kirkland, Simpson Thacher, Ropes & Gray, Sidley |
| Law Firms (LP-side) | Negotiate fund terms, side letters | Same firms, different teams |
| Data Providers | Performance data, fund info | Preqin, PitchBook, Burgiss, Cambridge Benchmarks |
| Industry Associations | Standards, advocacy, events | ILPA (LP-focused), AIC, MFA |
Many of these players host events where allocators and managers speak. Conferences from ILPA, industry associations, and data providers are all sources of spoken content that Osmosis can capture.
GP's IR team calls on LPs directly. Relationship-driven. Largest check sizes ($50M-$500M+). Longest diligence (6-18 months).
Most important for established managers.
GP presents to consultants. If approved, consultants recommend to their LP clients. Can take 6-12 months just to get on approved list.
Huge leverage: one recommendation = multiple allocations.
GP hires agent to make introductions, run process. Fee: 1-2% of capital raised. Good for first-time managers or new geographies.
Wirehouses (Morgan Stanley, UBS, Merrill), RIAs, private banks. Lower minimums ($25K-$250K). Different products: interval funds, feeder funds.
Growing fast—platforms investing heavily.
| Fund Type | Typical Duration | Notes |
|---|---|---|
| Flagship PE (established) | 6-12 months | Strong brand, existing LPs re-up quickly |
| Flagship PE (challenged) | 12-24+ months | If recent performance is weak |
| First-time fund | 18-36 months | No track record, building from scratch |
| VC (top-tier) | 2-4 weeks | Seriously. Access-constrained. |
Year 1-3: Capital calls (money in)
Year 3-5: J-curve (marked down)
Year 5-10: Distributions (exits)
Year 10-12: Wind-down
Examples: BREIT, BCRED (Blackstone), SREIT (Starwood), Brookfield perpetual funds
BREIT and SREIT saw massive redemption requests and hit gates—LPs couldn't get out. "Liquidity" in evergreen alternatives is conditional. Caused significant reputational damage.
| Dimension | Closed-End / Vintage | Evergreen / Open-End |
|---|---|---|
| Fundraising pattern | Cyclical, intense bursts | Continuous, steady |
| When they need intel | Pre-marketing + active raise | Always |
| Urgency | Very high during raise | Moderate, ongoing |
| IR team focus | LP re-ups + new LP pursuit | Retention, steady inflows, redemption mgmt |
| Competitive dynamics | "Did we beat Fund X to close?" | "Are we winning flows vs. similar products?" |
Acute pain during fundraising cycles. Intense need when in market. Great time to sell.
Chronic pain—always in market, always need to know what allocators think. Steady, ongoing value.
But the sales motion differs. Vintage funds feel urgent pain at specific moments. Evergreen funds have persistent, ongoing need.
This is the heart of the business model. Understand this and you understand the incentives.
Paid regardless of performance. Covers salaries, operations, overhead.
Only paid when returns exceed a benchmark ("hurdle rate"). This is the upside.
Scenario: $10B fund with 2% management fee
$10B × 2% = $200M/year
That's $200M in revenue just for managing the money—before any performance.
More AUM = more management fees. This is why fundraising matters so much. Every dollar raised is ~2 cents/year in guaranteed revenue.
Inside an asset manager, there are dedicated people whose job is to get allocator capital in the door. This is the team Osmosis serves.
The "face" of the firm to allocators. They maintain relationships, handle communications, organize annual meetings, and keep existing investors happy.
Osmosis use case: Prep for allocator meetings, track what their LPs are saying publicly
Hunters. They go out and find new allocator capital. Often have quotas. Travel constantly to conferences and LP meetings.
Osmosis use case: Find new allocators shifting into their strategy, competitive intel
Create the materials—pitch decks, DDQs, fact sheets. Craft the narrative. Work closely with IR and Sales.
Make sure the fundraising machine runs smoothly. Care about efficiency, headcount, and process.
IR and Capital Formation teams live and die by their relationships with allocators. They need to know what allocators are thinking, where capital is flowing, and what the competition is doing. We give them eyes and ears on the spoken conversations they can't attend.
Fundraising isn't constant—it happens in cycles, especially for private funds. Understanding this rhythm helps us time our outreach.
Funds in active fundraise or pre-marketing mode are our hottest prospects. They feel the pain most acutely.
To sell to asset managers, we need to understand what their customers (allocators) actually care about. This is what drives allocator decisions:
But not just raw returns—risk-adjusted returns. How much risk did you take to get that performance? Consistency matters.
Does the GP have skin in the game? Are the fee structures fair? Will they do right by LPs when things get hard?
Can I understand what you're doing with my money? Will you communicate clearly and frequently?
Has the team worked together? Are key people likely to leave? Allocators invest in people.
Increasingly important. Does this fund align with our values and mandates? Can we defend this investment to our stakeholders?
Is the fund too big? Will my capital actually move the needle, or will I be a tiny LP with no relationship?
When allocators speak at conferences, they're signaling priorities—"we're increasing private credit exposure," "we care deeply about GP alignment," "we're avoiding managers with turnover." Asset managers need to hear this to position themselves.
"We help you know what allocators are thinking and saying—so you can raise capital faster and smarter."
Know immediately when a target allocator speaks publicly about your strategy or a competitor.
Go into every LP meeting knowing exactly what they've said publicly about their priorities.
Understand how allocators talk about your competitors—and position against them.
Bookmark this. You'll hear these constantly.
| AUM | Assets Under Management. Total capital a fund manages. |
| LP | Limited Partner. The allocator/investor in a fund. |
| GP | General Partner. The fund manager who invests LP capital. |
| IR | Investor Relations. Team managing LP relationships. |
| DDQ | Due Diligence Questionnaire. Standard LP intake form. |
| Dry Powder | Capital raised but not yet invested. |
| Carry | Performance fee (typically 20% of profits). |
| Hurdle Rate | Minimum return before carry kicks in. |
| Vintage | The year a fund started investing. |
| First Close | Initial capital commitment that starts a fund. |
| Final Close | Deadline for LP commitments; fundraise ends. |
| Allocation | How an LP divides capital across strategies. |
Allocators (pensions, endowments, SWFs) have billions to invest. They give that capital to asset managers (PE, VC, hedge funds, credit) who invest it and charge fees.
Asset managers make money primarily through management fees (~2% of AUM). More capital raised = more revenue. So fundraising is existential.
The IR and Capital Formation teams are responsible for bringing in allocator capital. They need every edge they can get.
Osmosis gives them that edge—intelligence on what allocators are thinking, saying, and prioritizing, captured from public spoken content they'd otherwise miss.