If you’re contemplating a career pivot, you’re probably torn about the size of the independent wealth management firm that’s the right fit. Let’s dive into this world with a sprinkle of humour:
📏 Small Wealth Manager (up to 150MM)
With smaller firms, you get that cosy “family feel,” probably because you can practically reach out and touch everyone from your desk. Focusing on a limited number of custody banks simplifies operations, and savvy outsourcing can lead to cost-effective triumphs. Remember, language and market specificity are crucial – meet client needs without running the marathon. Think of this size as the “dainty delicacy” of the financial world.
💢 Medium Wealth Manager (up to 500MM)
Ah, the so-called “golden middle” – sounds enchanting but comes with challenges. An increasing number of custodian banks, enhanced system security requirements, and a rising appetite for diverse investment products mean more moving pieces. And let’s not forget the jigsaw puzzle of coordinating internal services. Yet, it often feels like an upscale boutique, especially if not run like a shared office space.
🐘 Large Wealth Manager (500MM and above)
Welcome to the realm of the “financial elephants.” These big players are often reminiscent of private banks and boast the bargaining power with custody banks, thanks to their substantial client assets. But beware of pitfalls – balancing costs and revenues here is a tightrope walk. A relationship manager in such an environment can find himself in a “Shop-in-the-Shop,” suddenly immersed in holistic wealth management with offerings like wealth planning, private label funds, or even private office services.
There’s always another angle. Some wealth managers might woo you with the allure of unlisted stocks, while others won’t. So, channel your inner Goldilocks and decide which world feels “just right” for you.
Source: LinkedIn
