Despite challenging start, Q2 busy for fund management recruitment in London

Despite challenging start, Q2 busy for fund management recruitment in London

Anna Miah 19.07.2017

After a challenging start to the year, Q2 proved to be a busy time for many fund managers in the London market.

Mergers and acquisitions (M&A) have dominated the headlines in the early part of the year as we saw a number of high profile mergers creating some of the largest money managers in the UK asset management landscape. As in the case of many before it, these mergers have created uncertainty for many with threat of redundancy a possibility as leadership continue to develop clarity around procedures and required headcount. With many institutions still also considering viable alternatives to base European operations due to the ongoing Brexit negotiations, we’ve seen an increase in active job seekers in the market in Q2.

With performance fees still facing scrutiny in the asset management industry, compensation has been under the limelight across the board. With bonuses contributing significantly to all in compensation, bonus season is eagerly anticipated by many. bonusFirms are more readily considering bonus buyouts or part compensating for any loss or earnings. With the prospect of higher long term earning potential externally, the mid-to-senior level finance market benefited from this greatly and we saw a number of key hires in this space. Mid-level candidates who are interested in this space would be encouraged to broaden their skills set and diversify.

Many of these hires were in startup or developing finance functions which increased the need for well rounded, commercial and technically astute finance directors, who have had hands on experience developing a firm’s finance infrastructure from the ground up. With the new attraction of Fintech’s and a resurgent banking industry, competition for candidate has been high for asset managers. Top tier candidates are now facing multiple offers of employment and in many cases counter offers by their current employer. As many available salaries can be restricted by internal benchmarks, candidates are now looking at additional benefits such as pension when considering offers.

Competition is especially high at the newly qualified level which has become an increasingly candidate driven market. Asset managers are facing stiffer competition from wider financial services firms who are offering commercial opportunities within areas such as financial analysis or business partnering. In comparison to previous years, when companies may have had a number of individuals at the final round stage to choose from, candidates this year have found a more saturated jobs market and are looking at additional factors such as career progression opportunities and work life balance when considering roles.

The interim market in Q2 was the most buoyant it's been since late 2014, part qualified hires in particular seemed a popular choice with our client base. Often these hires would be done on a temp to perm basis so the candidates have the opportunity to prove themselves in the role before being offered a permanent contract. Study by office genie work place happinessFinance hires in the private equity space improved for the first time in over a year and a good proportion of these were contract hires within fund accounting functions with candidates coming from both in-house and administrator backgrounds.

With the job market coming to life after a stuttering start to the year we anticipate hiring to continue into Q3. As the months in the run up to the summer holidays are generally quite active in terms of active opportunities, firms should benefit from an increase in available candidates in the market. Individuals who are concerned about job security due to M&A activity should also find reassurance in this increase of available opportunities over the summer months.

Below are some examples of typical roles we have seen this year and projected packages. 

PERMANENT POSITIONS

Qualified, projected base salary range (£k) and projected bonus range (%)

Fund Controller

£70,000 - £80,000

30% - 45%

Group Financial Controller

£80,000 - £100,000

25% - 35%

Hedge Fund Accountant

£60,000 - £75,000

20% - 40%

Fund Accounting Manager

£70,000 - £80,000

30% - 50%

Finance Manager

£55,000 - £60,000

20% - 30%

 

CONTRACT POSITIONS

Qualified, projected day rate (£k)

Fund Controllers

£400 - £450

Finance Manager

£350 - £450

Project Accountant

£300 - £400

Project Accountant

£300 - £400

Management Reporting

£300 - £350

Anna Miah's picture
Consultant | Accounting and Finance
amiah@morganmckinley.co.uk