In 2015, alternative asset management hiring hit an all time high. Even though Wall Street has seen more than its fair share of changes over the past decade, the alternative asset industry has remained strong.
Alternative asset investments have grown twice as fast as its traditional counterparts since 2005 with a projected growth of anywhere from $13.6 to $15.3 billion assets under management by 2020. The uptick is evident in a new report published by Convergence, showing an eight percent rise in AUM in the past year alone.
Firms have been expanding their funds and service offerings to address the varying needs of investors, increasing the demand for alternative asset managers. The number of investment professionals rose by eight percent this past year and with a corresponding increase in back office personnel.
Hiring alternative asset management talent doesn’t stop there. Regulatory measures are increasing due to unstable economic conditions, resulting in a higher demand for compliance and risk professionals. Anthony Scaramucci of SkyBridge Capital remarks in his Open Door interview that his first nine employees would have needed to be in compliance jobs to handle the “regulatory rubric” if he founded his firm just ten years later.
Hiring Alternative Asset Managers
As these factors continue to impact the industry, firms are focusing more than ever before on hiring competitive talent. So what should they be looking for in their search? According to a study by PWC, firms are currently choosing their fund administrators simply based off service levels and capability. As the industry concentrates on building trust and longevity, more emphasis should be placed on reputation, brand, and stability when looking for talent.
Hedge fund titan Julian Robertson puts it perfectly – “The most important thing to look for in hedge fund managers is that they are smart and honest.” Integrity and trustworthiness will continue to have a prominent role in hiring new talent, especially with increased pressure from compliance.
However, hiring quality alternative asset managers can be an expensive endeavor. Industry-wide personnel costs grew by $1.02 billion year over year, with no sign of slowing down. As a result, firms are being forced to re-evaluate their traditional recruiting methods and look for alternative solutions to facilitate lower costs.
To cater to these shifting trends, new recruiting technology has brought a different approach to hiring efforts. Traditional search solutions are becoming harder to sustain as the number of open positions rise. In order to maintain growth, alternative asset management firms have been leveraging solutions such as OneWire to balance recruiting costs without sacrificing overall talent quality.
With even more growth being projected in the following five years, alternative asset management hiring is bound to grow alongside it. Firms using these technologies have already begun reaping the benefits and will continue to stay ahead of recruiting trends as we move into 2020.