Hi, I’m interviewing for a research analyst position at a small family office with $20m AUM.
The core team is 4 people:
1 PM
1 research analyst
1 IR/Business
1 Legal
Unsure what salary to ask for or expect if I get the offer?
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Seriously though, I can't imagine such a small AUM paying out even standard management fees. Conservatively, 1% of fees is just 200k and so split that amongst 4 FT professionals is tough (completely excluding any other costs for infra/legal/etc.). 2% of fees isn't much better but could bump the base slightly. Is the PM the principal of the FO? In which case maybe he doesn't take a salary. At best you make $75-80k, maybe stretch to ~$100k depending on YOE? Can't imagine why you'd consider this if you're coming from banking at MS. If you're more of a mid/back office professional vs IBanking though it could be a good spot for a year or so just to get your bearings and some resume building.
They need 5 professionals to manage 20m...... Never interviewed with a family office but how do these economics make sense, surely you have to be missing something.
Did you make a typo and miss a zero?
$20mm is not a family office its a dude's PA. he can run this part time on Fidelity, wtf
Based on what you said something around $0 sounds about right
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~$80k would be a generous base, because the economics don't work at this size. Everything is coming out founder's pockets.
The headcount is way too large for current AUM, and launching with this little money and this many people strikes me as bad decision making. Maybe its a silo off of a lot more money and they are supremely confident about fundraising future...idk. Something seems off
That’s not an AUM, that’s a trade
$1,200, probably $1,250 if you negotiate harder
anything above that risks liquidation
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