---
title: "Manager Selection | Altss Glossary"
description: "Manager selection is the process an allocator uses to identify, evaluate, and choose external investment managers for allocation."
canonical: "https://altss.com/glossary/manager-selection"
---

Manager Evaluation

# Manager Selection

Publisher: Altss LLCPublished 2025-12-28Content modified 2026-01-06

Manager selection is the process an allocator uses to identify, evaluate, and choose external investment managers for allocation.

**Allocator relevance:** **The core allocator workflow—determines portfolio quality, risk posture, and long-term performance outcomes.**

### Expanded Definition

Manager selection combines quantitative assessment (track record, risk, attribution) with qualitative diligence (team, process, sourcing edge, governance, operational infrastructure). Allocators evaluate mandate fit, alignment terms, capacity, and the manager’s ability to deliver net outcomes consistently through cycles.

For private markets, manager selection is often the most important determinant of performance dispersion.

### How It Works in Practice

Allocators source opportunities, run DDQ/ODD, perform reference checks, assess terms (LPA, fees, carry), and present the decision through an IC memo to an investment committee. Approved managers are then monitored via reporting packages and periodic reviews.

### Decision Authority and Governance

Governance frameworks define selection criteria, approval thresholds, and exceptions. Strong governance reduces style drift and prevents decision-making based on hype or relationships alone.

### Common Misconceptions

- Performance numbers alone drive selection.

- A prestigious brand guarantees quality.

- Selection is a one-time event (monitoring is part of selection).

### Key Takeaways

- Manager selection is a repeatable process, not a vibe.

- Alignment, governance, and operational readiness matter.

- Monitoring closes the loop and validates the selection thesis.

## Related terms

[Investment Mandate](https://altss.com/glossary/investment-mandate)[DDQ](https://altss.com/glossary/ddq)[Operational Due Diligence (ODD)](https://altss.com/glossary/operational-due-diligence)[Due Diligence](https://altss.com/glossary/due-diligence)[Track Record](https://altss.com/glossary/track-record)[Investment Committee (IC)](https://altss.com/glossary/investment-committee)

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