Family Office Career Progression
Hi everyone, I'm considering taking an Investment Analyst position with a pretty interesting family office in London. I was just wondering what the opportunities to move into IB / AM look like? I'm aware people often move the other way for WLB reasons and I'm obviously not ignoring that aspect, I just want to have a better understanding of what is theoretically possible. Thanks a lot.
Any advice?
what do you want to do? family office = asset management as the client. the end game for most people. being the client is great.
investment analyst -- senior investment analyst -- portfolio manager -- CIO is a typical route
every family office is unique, some outsource alot of their investing, some keep it all in-house. depends.
The point about being the client is great. Different vibe than the hunter. Also, by nature of client's wealth, exposure to many asset classes other than traditional equity / FI. You'll see PE, PC, HF, Alts, CRE in addition to typical markets. Also some VC exposure where you are the VCer.
Agreed - I hadn't really thought about being the client at that most basic level. The exposure to the various asset classes is the big draw for me as a first role, it seems a brilliant opportunity to really get to grips with what I enjoy / am good at.
I guess my big question is about progression opportunities given that it seems most use a FO as an exit opportunity rather than a starting point, is that a fair assessment? I just want to be sure that the role is one that would be viewed positively if I wanted to move about within the financial services space.
I've not worked at one so I can't answer with any specificity. In general, FOs are not large organizations. Some bigger than others of course but nowhere near the size of an AM firm. Where you might suffer in structure, I think you gain a big advantage in opportunity to impact and shine. Probably easier to take on more responsibility quickly which will help you either within the firm or if you exit. Don't be so keen on an exit strategy. If you like the shop and there is upward mobility / opportunity , you may just want to stay. Also understand that, because it's an exit post for some, may be less room to move title but there's always opportunities to take on more work, get recognized and compensated. I don't think comp will be an issue long term.
yes you get exposure to everything under the investible universe (or can get exposure to it) -- id argue it makes you a better investor. not stock picker, or bond trader, but investor.
family offices tend to be smaller and less structured for sure, so you need to think about if you have the attitude and comfortability to do this.
id stress you to not think about things in terms of exit opps. if you are happy in your firm, like your boss, like your team, like your work, and are learning, the rest should take care of itself and if it doesn't, if youre doing a good job, youll surely have exposure to other opportunities. its a small world.
i personally would not leave my role for any other in the financial services space but to all their own. at the end of the day you get client exposure, youre underwriting managers and investments (as opposed to specific DD on securities usually)...its a valuable seat, you learn about taxes, estate planning, accounting and how investments fit within that universe. the market likes wealth management. its a stable, sticky, reoccuring revenue businesses.
to specifically answer your question -- you can probably transition into an AM role. highly unlikely to go into IBD but idk why you wouldnt do that to yourself to begin with.
you could work at another family office, you could be a client portfolio manager (CPM) for an asset manager, you could be an investment strategist, you could be a private wealth management advisor/banker (at jpm PB or equiv); its all going to center around asset allocation and wealth management unless the family office does lots of investing in-house
thank you so much for all your insight! I completely get what you mean about not planning exits when you don't need to, I realise it's a pretty unnecessary thought process. It sounds like a fantastic opportunity I'm just surprised more people don't consider it!
What do client pms make these days?
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