Hedge Fund Consultant Pay Rates

I've been contacted recently by hedge fund industry expert organizations who want me to be a paid consultant for them, and have a few questions since I haven't worked with one before.

Context: My experience is in business management at large quant funds, covering functions including research, engineering, portfolio management, trading, platform management, business development, strategy, etc. I'm aware of IP considerations from former employers, and currently am not at a fund or under non-compete. The organizations contacting me are not industry expert networks (i.e. soliciting information for equity research from industry experts). Rather one is a US-based top quant fund (PDT, Two Sigma, DE Shaw type), and another is an Asia-based research/expert consulting firm (which I hadn't heard of before but others online said is legit). Both are seeking information specifically on HF internal functions. The fund didn't give compensation guidance; the expert consulting firm cited $500/hour.

What hourly rate should I tell them to pay me? What rates have you/others you know of been paid?
What kind of information do they solicit?
How long are their typical consultant engagements?

Any other info you have is welcome.

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3 Comments

WSO Monkey Bot

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1mo

Based on the most helpful WSO content, here are some insights regarding your questions about hedge fund consultant pay rates:

Hourly Rate

Expert Consulting Firm Rate: The Asia-based research/expert consulting firm has cited $500/hour.
Top Quant Fund Rate: The US-based top quant fund did not provide specific compensation guidance. However, given the high-profile nature of firms like PDT, Two Sigma, and DE Shaw, you might consider negotiating a rate in the same ballpark or higher, depending on your expertise and the complexity of the information they seek.

Information Solicited

Internal Functions: Both organizations are seeking information specifically on hedge fund internal functions. This could include:
- Research methodologies
- Engineering processes
- Portfolio management strategies
- Trading operations
- Platform management
- Business development tactics
- Strategic planning

Consultant Engagement Duration

Typical Engagements: The context does not provide specific details on the duration of typical consultant engagements. However, engagements can vary widely based on the scope of the project and the depth of information required. It would be prudent to clarify this with the organizations directly.

Additional Considerations

IP Considerations: Given your awareness of IP considerations from former employers, ensure that any consulting work does not breach any confidentiality agreements or non-disclosure agreements you may have signed.
Non-Compete Clauses: Since you are not currently under a non-compete, this should not be an issue, but it's always good to double-check any lingering obligations.

Recommendations

Negotiate Based on Expertise: Given your extensive experience in business management at large quant funds, you are in a strong position to negotiate a competitive hourly rate.
Clarify Scope and Duration: Before committing, clarify the scope of the information they need and the expected duration of the engagement to ensure it aligns with your availability and expertise.

Feel free to ask for more specific details from the organizations to better tailor your rate and engagement terms.

Sources: To what extent do you tell family / friends about your salary?, Quant HF - How Much Should Entry PhD Quant Expect To Be Paid??, Private Wealth Management/Private Banking Guide for Associates, My bank pays everyone different, Management Consulting Salary & Compensation, Average Bonus in Consulting

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HF

Manager in HF - Macro

1mo

Bump. Need to know what pay rate to tell them.

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Authored by: Certified Hedge Fund Professional - ManagerCertified Hedge Fund Pro

LowCaliberTalent

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