Separating asset management from BO, RM, legal

At the moment I'm not seriously considering starting my own fund, but just to plan (way) ahead, I'd appreciate some advice on this topic.

Imagine for a moment that fund capital is not an issue. Say I know people who would trust me with $20 million to invest on their behalf. I'd be running a one man show, or at most hire one person to handle tech issues, data etc.

Is it possible for a tiny fund like this to outsource back office functions / risk management, and focus solely on making investment decisions and doing research? Or are some of these supporting functions even required (by law) in case of a tiny fund?

Aren't there large asset management firms that focus only on investment decisions and portfolio management, i.e. the entity with fund capital will just hire a portfolio manager from the Asset Management firm, and handle all other stuff either on their own or by outsourcing them to someone else? Would this not work in a smaller scale?

To sum it up, instead of starting your own fund, is it possible to start a business focusing only on investment decision making and let some other party take care of all the rest?

1 Comments
 

Ab nihil aut assumenda qui deleniti est. Quas vero ipsam voluptas. Adipisci voluptatem recusandae delectus perferendis nulla ipsa similique totam. Dolores cumque facere molestias aut dolor similique. Dolorem magni qui nobis aperiam et est excepturi cupiditate. Qui blanditiis sunt iste qui quaerat magnam illo id.

Consequatur itaque provident ut consequuntur sed ex ut. Provident inventore ipsam voluptatum saepe qui eius. Est non consequatur ipsa.

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Career Advancement Opportunities

July 2026 Hedge Fund

  • Point72 99.0%
  • D.E. Shaw 98.1%
  • Citadel Investment Group 97.1%
  • AQR Capital Management 96.2%
  • Magnetar Capital 95.2%

Overall Employee Satisfaction

July 2026 Hedge Fund

  • Magnetar Capital 99.0%
  • D.E. Shaw 98.0%
  • Blackstone Group 97.1%
  • Citadel Investment Group 96.1%
  • Millennium Partners 95.1%

Professional Growth Opportunities

July 2026 Hedge Fund

  • AQR Capital Management 99.0%
  • Point72 98.1%
  • D.E. Shaw 97.1%
  • Citadel Investment Group 96.2%
  • Magnetar Capital 95.2%

Total Avg Compensation

July 2026 Hedge Fund

  • Portfolio Manager (9) $1,648
  • Vice President (27) $464
  • Director/MD (12) $423
  • NA (9) $320
  • Engineer/Quant (86) $288
  • 3rd+ Year Associate (26) $284
  • Manager (4) $282
  • 2nd Year Associate (32) $253
  • 1st Year Associate (77) $191
  • Analysts (242) $181
  • Intern/Summer Associate (29) $145
  • Junior Trader (5) $102
  • Intern/Summer Analyst (282) $96
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
kanon's picture
kanon
99.0
3
Secyh62's picture
Secyh62
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
Betsy Massar's picture
Betsy Massar
98.9
6
GameTheory's picture
GameTheory
98.9
7
DrApeman's picture
DrApeman
98.9
8
dosk17's picture
dosk17
98.9
9
CompBanker's picture
CompBanker
98.9
10
bolo up's picture
bolo up
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”