If youโre contemplating a career pivot, youโre probably torn about the size of the independent wealth management firm thatโs the right fit. Letโs dive into this world with a sprinkle of humour:
๐ Small Wealth Manager (up to 150MM): With smaller firms, you get that cosy โfamily feel,โ 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 โ meet client needs without running the marathon. Think of this size as the โdainty delicacyโ of the financial world.
๐ข Medium Wealth Manager (up to 500MM): Ah, the so-called โgolden middleโ โ 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 letโs 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.
๐ Large Wealth Manager (500MM and above): Welcome to the realm of the โfinancial elephants.โ 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 โ balancing costs and revenues here is a tightrope walk. A relationship manager in such an environment can find himself in a โShop-in-the-Shop,โ suddenly immersed in holistic wealth management with offerings like wealth planning, private label funds, or even private office services.
Thereโs always another angle. Some wealth managers might woo you with the allure of unlisted stocks, while others wonโt. So, channel your inner Goldilocks and decide which world feels โjust rightโ for you.
Source: LinkedIn
