Asset Management vs. Private Banking

The roles seem similar. Except private banking seems to have more client interaction. Can someone please break down the differences in responsibilities, day-to-day, skills required, compensation and exit opps. Plus anything else you may deem relevant

Any advice is greatly appreciated. Thanks!

 
Best Response

they are similar in many areas, but differ fundamentally in several critical aspects

in asset management, the clients are either institutions or mass retail (via mutual funds). you have portfolio managers that manage these funds and sales people to sell such funds and manage the relationship

in private banking, the clients are HNW individuals. you do not have portfolio managers that manage these funds and private bankers being required to only sell the firm's products. instead, it is more of an advisory relationship where the PB can sell any asset class from any firm although structured products (by the own bank) tend to dominate for obvious reasons

either way, private banking offers significant client interaction if you are attached to a private banker instead of other areas (research, middle-office etc.). then again, asset management also offers a lot of client interaction if you are attached to the sales team. the reason why people have the impression that private banking offers more client interaction may be due to the fact that the sales-force (as a %) of the division in private banking tends to be higher than asset management

(I have interned in both functions and will be joining the asset management division of a top BB)

 

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