Alternative asset growth prompts demand for private market expertise

Private markets expertise is sought-after for investment operations hire, according to a recruitment firm, but there is a gap between demand and supply. 

According to Kaizen Recruitment, which specialises in financial services jobs, experience in private markets is “in high demand” as investors seek to allocate to alternative asset classes.

Private markets has been gaining prominence with a number of firms such as Hamilton Lane, Metrics Credit Partners and MA Financial launching strategies in the space, including private equity and private debt.

Kaizen said: “Private markets experience is in high demand across the investment operations space; however, equities and fixed income remain the most common asset class exposure. There has been a notable increase in candidates possessing experience in real estate, private equity, infrastructure and private debt, however, there remains a gap between demand and supply.

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“There needs to be some flexibility from firms on having this skill set as a requirement for roles, with some firms willing to allocate resources to upskilling and training candidates on this skill set.

“We expect firms to continue to focus on hiring candidates possessing a technical skill set, with alternative asset class experience in high demand.”

Another area of interest when recruiting investment operation roles is experience in data analytics as firms place more emphasis on technology. However, the downside is that candidates with experience in that sector may lack the relevant fund management experience. 

This means firms need to train those candidates in-house, which can take up time and resources.

“While the demand for these skills continues to rise, the supply side continues to be challenging, with some firms seeking this skill set in sectors outside of funds management. Notably, this is a positive solution, however, these candidates will often lack an understanding of the broader investment operations landscape, often resulting in considerable training and upskilling requirements. 

“We have successfully placed candidates with data analytics skill sets from insurance firms and banks into fund managers. Firms could potentially build subject matter experts in-house, with practical data analytics courses that may equip staff with coding and programming skills, rather than hiring externally.” 

The average investment operations analyst could earn between $85,000 and $110,000, while a head of investment operations could earn more than $200,000 if they have 15–20 years’ experience.