Family offices are increasingly popular ways for ultra-high-net-worth individuals and families to manage their wealth. As family offices grow more complex, there is strong demand for experienced investment advisers to oversee portfolios. Key hiring criteria include asset management expertise, relationships with top money managers, and alignment with family values. This article will explore family office recruitment trends, top hiring priorities, compensation, and career paths for investment advisers at multi-family and single-family offices.
Prestigious family offices rigorously vet advisers for discretion and loyalty
Family offices seek advisers with integrity above all else. Candidates must prove they can be entrusted with sensitive financial information without breaching confidentiality. Background checks, extensive referencing, and due diligence are common. The adviser must also demonstrate loyalty to the family and their objectives. Compensation is often tied to multi-year performance to encourage long tenures.
Asset management expertise is mandatory for family office investment advisers
Deep asset management expertise is a basic requirement for family office investment advisers. Proven experience directly managing sizable portfolios or assets is essential. Expertise should span multiple traditional and alternative asset classes like private equity, hedge funds, real estate, and venture capital. Advisers are expected to leverage relationships with top fund managers to access exclusive investment opportunities.
Cultural fit and shared values are decisive factors in hiring
Alignment on values and culture fit tend to drive final hiring decisions for family office investment advisers. Some families have specific impact or ESG mandates that the adviser must embrace. Multi-family offices look for advisers who can tailor their approach to the varying priorities of different clients. At single-family offices, the adviser must mesh well with the family’s personalities, interests, and goals.
Base compensation is robust with performance incentives
Salaries for family office investment advisers are generous, averaging $300,000-$500,000 for mid-career hires. Bonuses up to 50%+ of base pay are common, especially when performance exceeds benchmarks. Equity ownership, profit sharing, and revenue sharing are also used to incentivize advisers to grow assets and contribute to the family office’s success. Top performers can earn total compensation well into seven figures.
Family offices offer experienced investment advisers ample resources and strong incentives but also high expectations and scrutiny. Beyond returns, advisers must prove discretion and gain the family’s trust. But for those who succeed, family offices provide rewarding career paths and elite networks in asset management.