We present the design of a compact AC susceptometer for studies under arbitrarily oriented static magnetic fields, in particular magnetic fields oriented transverse to the AC excitation field. The small size of the susceptometer permits versatile use in conventional cryostats with superconducting magnet systems. The design of the susceptometer minimizes parasitic signal contributions while providing excellent thermal anchoring suitable for measurements in a wide range down to very low temperatures. The performance is illustrated by means of measurements of the transverse susceptibility at the magnetic field tuned quantum phase transition of the dipolar-coupled Ising ferromagnet LiHoF$_4$.