BDM salaries spike as FMs target intermediary market
Recruitment agency Keegan Adams has released its funds management distribution salary guide for 2025, as firms favour senior professionals with extensive networks.
The firm highlighted the role of business development managers (BDMs) has become more critical than ever amid rising complexity in the funds management distribution market.
This is particularly the case for the growing alternatives and private markets channels where fund houses are relying on their BDMs to help them reach retail and intermediary channels.
“BDMs with extensive networks and deep expertise are instrumental in navigating the evolving distribution channels, including the shift from wholesale to direct-to-consumer models,” Keegan Adams wrote.
This echoes comments by EY earlier this year that alternative fund managers are actively looking to add headcount in business development to help intermediaries understand the intricacies of their products.
According to the boutique recruitment agency, heads of distribution – who have 16–20+ years of experience – are earning $290,000–$350,000 in the wholesale market and $340,000–$400,000 in the institutional market.
Senior business development managers (BDMs) with 10–15 years’ experience are seeing salaries of $230,000–$280,000 in wholesale channels and $240,000–$330,000 in institutional channels.
With five to nine years in the industry, BDMs in the wholesale space are earning $140,000–$220,000, while their institutional counterparts are making $160,000–$230,000.
Business development associates, who have one to four years’ experience, are seeing salaries of $90,000–$130,000 for wholesale and $100,000–$150,000 for institutional.
Source: Keegan Adams, January 2025
The ability of BDMs to cultivate relationships with key stakeholders, including institutional clients, wealth management firms and family offices, is vital to ensuring a competitive edge, it stated.
As a result, the majority of fund management firms are preferring to hire senior BDMs who bring pre-established relationships in the local market to the role, compared to investing several years in training and developing junior candidates.
Keegan Adams noted junior BDMs are now also seeking higher salaries than in the past. As a result, this has raised concerns among hiring managers and prompted some to consider alternative solutions, such as hiring regionally, offshoring, or opting for more senior professionals.
As the demand for skilled distribution professionals continues to rise, compensation packages are becoming increasingly competitive. BDM bonuses in 2024 ranged from 25–70 per cent of their base salary, while top performers earned bonuses of more than 80 per cent.
“To attract and retain top talent, firms are also enhancing their employee value propositions (EVPs) by offering bonuses, education allowances, and health and wellness benefits,” the recruitment agency added.
AUTHOR
Jasmine Siljic
Recommended for you
Bentham Asset Management has become the latest fund manager to expand its distribution team as it reports increased interest in its credit strategies.
L1 Capital, which is in talks to merge with Platinum Asset Management, has indicated it will be voting against a deal to convert a Platinum LIC into an ETF.
Evidentia Group has hired a head of quantitative investments who joins the investment firm and managed account provider from AMP.
Fidelity International has worked in tandem with Australian wealth manager Emanuel Whybourne & Loehr to launch an actively managed global equities strategy aimed at financial advisers.
