Meet our Experts: Killian Lonergan on navigating Europe’s fragmented funds market, one relationship at a time

The art of distribution has never been more important as managers look to capitalize on new opportunities in a sometimes-challenging landscape. On the flipside of margin pressure, increased regulatory scrutiny, and intensifying competition, managers are exploring new product types, tapping into new pools of capital, and pushing innovation. For Killian Lonergan, Head of Distribution Intelligence at Brown Brothers Harriman (BBH), his priority is helping clients chart a path through the complexity, matching long-term strategy with market reality.

While his role is unique at BBH - and in the industry - he stresses that distribution intelligence is a team sport, “There is no single source of expertise. It’s about getting the right people into the room.”

It’s a pragmatic approach that reflects the complex market he operates in. For example, there’s significant regional differences. In Europe, a fund is sold, not bought. Whereas in the US there's a lot more money in funds, but there's far fewer funds and the buyers are well known.

That means European asset managers must compete fiercely for flows and rely on a web of intermediaries to reach end investors. “Our role is to help managers understand that landscape and build a multi-channel strategy.”

High touch, responsive service

Lonergan has spent nearly 17 years at BBH, starting in Dublin before relocating to Zurich in 2015. He moved into a role that bridged product, operations, and client strategy - offering a foothold in the growing complexity of European cross-border fund distribution.

“We wanted to be the go-to transfer agency for all these buyers,” he says. “Even if the TA isn’t the reason a fund is chosen, we knew we could create an edge by making the experience better, personalized, high touch, and responsive.”

He is keenly aware of the pressure clients face in today’s market.

“Inflows aren’t guaranteed today,” he says. “That’s the reality. It’s not a case of ‘build it and they will come’. Fundraising is hard, margins are thin, and regulation is constant. We see it as our job to walk a mile in their shoes.”

The macro picture, though challenging, is not without opportunity. The EU’s Savings and Investment Union (SIU), a relatively new policy initiative, aims to channel more household savings into productive investment - something Lonergan believes could be transformative.

“It’s the cool thing to talk about right now, they're trying to get people to come together and say, you know what, if a wind farm needs to be built in Denmark, the government's not going to pay for it so let’s get a fund to create it and get the right people to invest in this alternative fund.”

As for his own motivations, they remain refreshingly straightforward. “I genuinely like what I do. I couldn’t fake it. And I’ve been lucky - I’ve always worked with people I respect. That makes a huge difference in this business.”

Nearly two decades in, he is still the one clients turn to when the distribution maze seems too complex to navigate. “They know we want them to succeed,” he says. “And I think that’s what keeps them coming back.”