Here's how family offices are snapping up talent from private-equity firms and elite wealth managers, according to 6 top recruiters
The Business Insider article, “Here's how family offices are snapping up talent from private-equity firms and elite wealth managers, according to 6 top recruiters," quoted Russell Reynolds Associates Consultant Jeff Warren on what he's seeing in the family offices space. The article is excerpted below.
Most banks and asset managers are slowing hiring or laying off employees during the pandemic. Or both. But family offices, the hush-hush, loosely regulated wealth managers for the world's richest clans, are outliers.
After pausing searches for brief periods earlier this year, many have resumed hiring for largely investment roles in recent months, six recruiters said in interviews with Business Insider.
They're looking in many cases to draw in talent from private equity firms and elite wealth managers, recruiters said, and continuing to form operations that resemble established institutions with sophisticated capabilities.
"There is some concern that the equity markets are frothy," and that having hefty exposure to private markets makes sense, said Jeff Warren, co-head of the private equity practice in the Americas for Russell Reynolds Associates.
Warren, who is based out of New York and Los Angeles, said this year his team has completed searches for direct reports to a family office CIO specifically to oversee private investments.
There is also a sense among family offices that they've got capital to deploy but are wary of putting money to work in funds charging something pricey like "2 and 20" — a traditional compensation structure where hedge fund managers and other money managers charge investors 2% of total assets under management and 20% of profits generated — and instead would rather allocate that capital directly, Warren said.
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