How many employees per billion AuM?

Is there some kind of general rule or orientation in asset managment companies how many employees (research analysts / PMs ...) per AuM are necessary / valuable? Would be interesting ...

 

No rule per se. That is suppossedly the beauty of this biz, highly leverageable. But that said, it is also very dependent on the style of you run. Wealth management will be different than hedge fund for example. Wealth management requires more client soft touch points and thus is not as scaleable. A Hedge fund model where you are not hand holding clients allows for much more leverage. I know funds running 20+ bil with 25 people, that is because the model works. I think it down to whether the bread and butter of the firm is more relationship based or return based. Expect more people per 1bil of AUM in a private wealth management shop vs a hedge fund.

 

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