It may not be good news for the hedge fund industry, but it does point out an alternative career path for those holding hedge fund jobs. Reuters reports that multi-family offices that serve the wealthiest individuals and families are increasingly poaching investment managers from hedge funds. And after the drubbing that the hedge fund industry has taken in the past two years, many fund pros may be willing to take the offer, even if it means a pay cut.
The news comes from Greg Coules and Adrienne Donald of the recruiting firm Hunter Advisors in New York City. They say that professionals who make the move are looking for a more stable and “genteel” work environment.
There are hundreds of multi-family offices in the U.S. that manage up to $500 million or more of client assets. They are increasingly looking for fund managers and analysts from hedge funds to help them manage the business, investment and real estate assets of their wealthy clients.
The downside, though, according to the Reuters article, is that former hedge fund professionals may have to worry about interference from family members in their work, family politics, and a perceived loss of prestige from stepping out of the hedge fund industry. And they can say goodbye to the 2 and 20 pay scheme they earned if they were a partner or senior member of a hedge fund. The upside is stability and perhaps a better work-life balance.
What are your thoughts? Would you be willing to make the switch from hedge fund manager to family office? Add your comments below.