Offer to apprentice as HNW asset manager, $2B aum
So this is kind of old school. I'm currently a consultant (3yrs out of college) performing macro analysis for capital markets and corporate strat guys. My fiance's father is a BB wealth manager in NY, generally managing ultra-high net worth families and VIP accounts like foreign royalty and the like. He has $2B AUM and growing as that sector consolidates; he'd like to teach me to take over his book and run the office, keeping things in the family.
This seems like an extraordinary opportunity, both financially and from a relationship-building perspective, but I'm afraid I'll get bored if too much of the work amounts to financial planning while we farm out the real investment analysis/trading. I'm assuming his office isn't aggressive on the latter since the 3-4 underlings generally have financial planning backgrounds. I've always wanted to do institutional AM and receive the training/brand name in addition to more stimulating work, but this PWM opportunity seems more directly lucrative and perhaps more entrepreneurial.
If I joined the office and apprenticed with this manager for a few years as an Associate PM, how would it limit my future options in finance if I decided it wasn't for me? How marketable would I be on the institutional side?
Assuming you don't say on your resume that while working as an Assicate PM, you ignored all macro analysis, and forgot what you've learned so far, I don't see why that would limit you as you're still young (three years out of college).
More importantly, do you have any specific fields you want to work in or are you just doing this because you're bored with your current job and/or want the mad cashflow of a $2B PM?
Good luck with your fiance and future in-laws
If you're interested in Private Banking, you'd be hard-pressed to find a better opportunity. Not many private bankers have $2B AUM, so this guy must have one hell of a big swingin' dick. However based on your current role (macro analysis for capital markets and corporate strat guys) and future interests in institutional asset management, it doesn't sound to me like you have a long term interests in private banking. I'm sure you know more about PB than I do, but it is more schmoozing/relationship building oriented no?
If you're more interested in analytical work or you're content with your current, tell your in-law the truth. I would hope he understands. If this guy really has a $2B book, I'm certain he knows plenty of people who do what you're interested in doing long term.
If you're on the fence...I'm only a UG, so I can't speak to future opportunities in finance if you go into PB. But you sound like a well-connected intelligent guy who could find his way if PB doesn't work out.
sound advice from a college freshman.
At least I'm willing to admit I don't know everything under the sun when it comes to life and high finance...unlike half of the douche bags on these boards. And Guts? Who the fuck is that? A character from Top Gun?
LOL, dude $2Bn AUM?? your total comp per year will DEF be 7 digits if you take over the entire client list... that is if you can keep them.
Therefore, DO IT.
Well if he was, I'm an asshole and apologize.
Here's a third way out. If your father-in-law is either decidedly stern or bizarrely quirky, you spend a couple year with some crazy antics at his office and then sell the script to Hollywood.
But seriously, how are the upper and mid-level guys at his office not furious that he's handing his entire book over to his daughter's unexperienced fiancee? Furthermore, how will his clients be alright with this unabashed display of nepotism? Maybe they're so old money that they're into that sort of Don Corleone thing, but if I were some "high net-worth individual" I'd be suspicious that my PWM was acting on behalf of his own interests instead of mine.
From your perspective though, yes, you should definitely take the job.
Thank you all for the sound advice.
In terms of the nature of this apprenticeship, it would last quite a while, lasting perhaps 10 years before I was on my own. At that point, I wouldn't be inexperienced and would have learned the process that has made him so successful over the years. I'm also bringing a rather staunch resume on its own, certainly not the experience level of his staff, but comparing the two you'd see I've been on a much higher trajectory -- even without the shortcut that good relationships can offer. So in terms of the clients, I don't think inexperience will play much of a role.
As for the nepotism, this is the one thing I have a bit of personal trouble with, even given the fact I also come from a family of means. But there is a trust level and pressure on a smart/reliable "next-in-line" relative that you don't necessarily have in a more corporate, meritocratic setting. I would be performing for more than financial incentive, but to carry on the family's banking tradition/name, which an outsider wouldn't feel attached to. It's the social/emotional incentives that tend to drive your long-term performance, since your financial incentives tend to act over the shorter-term. Of course, 10 years of bad performance and you'll lose clients, but you'll still make out like a bandit. For someone who without the psychological attachment pulling in 7 figures per year over 10 years may be enough. Not in all cases, but your risk of pulling a myopic manager from a corporate context is higher, unless you have a bunch of spoiled idiots for kids and relatives.
I apologize for not evaluating your situation to the necessary extent.
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