Internal Wholesaler
Hey guys,
I’m familiar with this sales role for an asset management shop. Ive just been given a few offers to change careers into that role and hope to work my way into an external role.
That being said, what is it like to be an internal wholesaler in 2023 and is it worth it these days? The job seems pretty easy for day to day 20-60 calls 9-5 and solid pay. Is this we’ll known or do people not like this role?
I'm an FA and know many internals and externals in funds, alts, VAs, life. It's the path if you want to be an external. Very difficult to get there without being an internal, Have worked with many and good ones are invaluable to my practice. Keep me current on trends, product, macro. The good ones are great. The lousy ones are annoying. It's a good job if you want to talk finance all day and build relationships. Some are quite technical and others are purely relationship based. I prefer a mix. I need knowledgeable people but I also want a rapport. Internal money is pretty good for young people and those new to the industry. External money can be great. You're essentially building a distribution business.
Thank you for that. It seems like a very good job for the right person, I’m switching from fundraising in VC as my first role and into this so a little different but I think id prefer this. What makes an internal anoying if you don’t mind me asking?
I imagine this would have a much higher success rate and provide the opportunity to develop far more long term relationships than VC fundraising. Also the sales cycle will be much shorter. Also, if it's a developed firm, you'll have a far easier time getting to have meaningful conversations with FAs. Won't be cold calling, but rather reaching out to people who may already use your firm or have in the past.
Key to being a good one is being useful. In order to be useful, you need to be consultative and learn about my practice, what I'm interested in, what I need. It's really about me, not you or your firm. So the annoying ones just want to sell me something. They just "feature" me - "We have this, we have that, our fund beat X by y%." Guess what, nobody cares. Learn to ask good questions and really listen to ID the right solutions. Some of them may not even be product but can help my practice ops. Let's face it, most products are commoditized and nobody has the best anything as that's very subjective. If you have a top shelf offering and are responsive, consultative, inquisitive and truly looking to help me, I'll sell your products that fit my lane. If you make my life easier, I'll be loyal to you.
Learn to be conversational, intelligent, informative, and solve my problems. Also key, do what you say you will do? If you tell me you'll get me X by 3pm, do it. If for some reason you can't , call me and let me know. Otherwise I have no use for you.
It's a 20B+ AUM firm with recognizable pms and a focus on alts. It's a little more work than a bank wholesale role (a lot more calls per day) but compensation is better and I'm encouraged to get a CAIA. I will mainly be responsible for consulting/managing/cross selling with established business but am also free to help bring in new business. For more color, they have mutual funds on the wirehouse platforms, independents/RIAs and also work with institutional investors so I think its the type of wholesale routine you described.
I really appreciate this advice and you're 100% right. I will have a lot more ability to logistically contact people compared to my old role of VC fundraising and reg d sales so ideally be much more consultative than deals/hot opportunity. Obviously, I want to win business but I wanted a role where I can build a relationship and not feel as if it's a one way street. Looking to be the type of guy you're describing and am happy to be leaving the PE/VC world, my favorite relationships we're with the wealth mgers and small business owners who wanted to add on to a wholistic portfolios (less so the tech guys and euro family offices). This sounds like it's gonna be a fun time but also feel much more rewarding.
Thanks for the insight and advice.
Congrats! Sounds like a great gig. The CAIA will definitely help with credibility. I've know Alt wholesalers (external) who cracked 7 figures. Take that with a grain of salt as comp varies by firm. I think they were paid on a basis point scale with no cap. Regardless, ALTs will be a big focus going forward. The banks will tighten credit (similar to '07 / '08) and the Alt guys come in as direct lenders to midsize firms that have no other access to capital. They'll also take over a lot of RE deals for the same reason. Flows should be high.
Real situation. This just happened TODAY. This will answer the question of how to be a good wholesaler. I use a major company for a particular type of structured product. Have used them for yrs. Have a great relationship with both the internal and external. Came across an opportunity that they can't do because of current systems limitations. The external referred me to his top competitor after researching the scenario to make sure they could accommodate the transaction. Similar enough solution for the client. I will get up to speed and discuss with my client. I'm hoping to have them hold off for a few months as my primary company will take the business by yrs end. Either way, my wholesaler is going above and beyond to solve my problem, even if it sends business elsewhere. He gets it. This is a long term relationship business and he knows I'll write millions with him beyond this sale. That's a good wholesaler!
Annuity?
Structured Notes. Couldn't be held in a certain type of account with firm X. Not a problem with firm Y.
Can anyone provide insight into what comp looks like for an internal at an alts shop?
I find it an intriguing path but worried it would be a haircut relative to what I’m currently making in PB.
It’s a wide range. Anywhere from $100k to $180k all-in with outliers above that.
That’s pretty decent. Thanks.
100-180k is accurate but I can say it even gets as high as 200 to nearly 300k …as an internal. The caveat is there is a lot less seats held by dudes under 30 and almost never a recent grad (it seems most firms across the board don’t hire recent grads as a wholesaler anymore).
Some Alt shops are able to get more calls due to well respected pms and unique highly revered active/passive strategies. It’s a good time to be consulting FAs about non market correlated strategies in this environment.
Interesting, didn’t know internal seats had become so competitive. What would my odds like like as a PB associate at JPM/GS?
Anyone have any idea on comp for externals at a T10 AM shop?
Blackrock or JPM asset management for example...I've heard average is around 500-700k top guys do 800 top as high as even 1.5m depending on certain factors but expect a guy in his mid 30s to 40s to be looking at 700k+ in the North East, South West, and near 1m in Florida.
Pretty accurate. Know many who have hit 7 figures. The average guys/gals earn 400k-600k once established. Probably a few yrs ramp up to that if starting a scratch territory or taking over one that is a poor performer. The bad ones make 250k and don't last long. I've seen guys bounce form firm to firm to firm over the years (the bad ones). I've also seen some stay for the long haul. Those are the ones that really get it.
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