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Fighting for revenue; Consulting firms are extending their businesses by providing multimanager strategies, making clients' investment decisions.(Special Report: Consultants)

Byline: Mark Bruno

Institutional consulting firms, in their collective bid to stay competitive and boost their bottom lines, are gradually morphing the business.

By and large, consulting firms still concentrate on providing investment advice to institutional investors, but more of them are either slightly tweaking their business models or launching entirely new lines of business.

"The typical revenue structure makes it difficult for consulting firms to compete, not just with one another, but with investment management firms that can pay these same professionals multiples of what they earn as a consultant,'' said Kevin Quirk, partner at strategic consulting firm ...

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