Large Multi-Family Offices vs. Large Long-Only Firms
I have received a some feelers for a research position at an equity mutual fund within one of the very large multi-family offices in the US (Glenmede, Brown Brothers Harriman, Silvercrest, Bessemer, etc.). I wanted to get some opinions on how these firms differ from the long-only mega funds like Fido, T Rowe and Capital Group. Comp, culture, career (comp) trajectory are all things I would enjoy hearing about.
I would assume the comp is typically lower, the cultures are all pretty formal (suit and tie) and they offer a pretty steady career growth. Would love to hear from anyone that knows these firms a bit better.
Edit: Exit opps would be great also if these aren't typically career firms like the large LOs.
Hey Research Analyst in AM - Equities, I'm the WSO Monkey Bot and I'm here since nobody responded to your thread! Bummer...could just be time of day or unlucky (or the question/topci is too vague or too specific). Maybe one of these topics will help:
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You're welcome.
Bump
Bump. Any info would be very helpful.
I don't have personal experience working at any of the MFOs you mentioned (so take what I say with a grain of salt), but I have worked as an analyst at one of the AMs you mentioned and another multi-family office and my take is:
Working at a MFO would come with an improvement in WLB, potentially career stability and culture (differs firm to firm)
Step down when it comes to comp, exit opps, prestige, opportunity to learn about investing
MFO is a good place to be if you want a relatively chill buy-side job IMO
Can you elaborate a bit more on how much of a comp step-down and about less opportunities to learn about investing, etc.? Not necessarily at the point in my career where I'm looking for a chill, environment (by LO AM standards) and am willing to sacrifice some WLB early on for greater upside in the long-run.
What do the longer-term comp trajectories look like at the MFOs? Again, I am looking at the ones with their own fund families.
Worked at single FO but roughly same dynamic v MFO
MFO = *much* less sophisticated people, >30% pay cut vs LOs, worse brand name, worse training
At the SFO you worked at, were you picking individual stocks for a strategy or were you doing manager research? This opportunity has internal funds that are distributed through the MFO structure. I would be in an investment seat at one of the funds. Would be curious as to why comp would be that much lower?
Was picking individual stocks. Comp is lower due to lower mgmt/performance fees than an open fund structure.
Not sure how it is in the US but i can tell you working as a VP for an MFO in Europe that its largely like working at a Private bank.
The $$$ is essentially, almost exclusively even, going to relationship managers (hunters) and partners. In those positions you get a fix salary, plus P&L share of up to 40% on your book depending on the firm and your negotiation skills.
As a portfolio manager, the job mostly consist of managing portfolios according to each client profile and risk tolerance, participating in weekly meetings on asset allocation, fund selection/stock picking etc... , possibly investment comittee meetings (depending on your seniority) where more macro level decisions are taken. There the pay varies greatly but hardly above 200K unless you make it to CIO.
....As someone else highlighted most are not very sophisticated but the trend is changing as clients are themselves becoming a lot more sophisticated, information is now more transparent than ever and if you are knoweldgeable you can easily make a difference.
Lastly, you may have to deal with conflicting situations where the firms tries to push a specific agenda that may not be in favor of your clients. thats tricky to navigate as the company pays you but your value is in your book so ALWAYS protect the client and its interest as you can always change firm by taking your clients with you if things dont go your way.
OP here. Just for clarity, I would be working at a fund within a MFO in an investment seat picking stocks. I would not be in business development and therefor would not be doing client service or relationship management.
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