Talent Metrics in the Alternative Asset Management Industry 2013

The “hedge fund industry” continues to mature and evolve into a universe of businesses often rebranding themselves as “investment management” or “alternative asset management.” These firms grow in head count, they are recognizing the significant benefits of well-designed targeted performance management processes.

In a survey conducted jointly with the Alternative Investor Institute, we collected responses from a variety of senior professionals in the industry—including heads of sales, marketing, and/or human resources at twenty-three firms—on questions of performance-based compensation, talent retention, and the growing need for channel-specific sales specialists.

Overall, compensation is up 5-15 percent for the hedge fund/fund of funds industry on the back of renewed inflows and solid performance numbers.

Top performers are the focus of increasingly formalized “retention plans,” while those contributing less are being given “development plans” with affiliated time frames. Teams are growing slightly in head count, but are also reorganizing to more accurately mirror the origin of asset flows and needs of clients.