A greater number and calibre of wealth professionals is required as the industry matures and expands globally
For financial advisors or investment managers looking for a change of direction, family offices are expanding their operations and boosting compensation.
These entities are evolving from their roots as small organizations managing the extraordinary wealth of individuals and families into wealth managers with institutional-type requirements.
As part of a more mature industry, family offices need more wealth professionals with unique skill sets and are prepared to pay them well.
A new report from KPMG Private Enterprise and Agreus Group, a specialized recruitment firm for family offices, reveals an optimistic economic outlook for this segment of the wealth management industry.
Family offices date back to the 19th century and the family of JPMorgan but today the report estimates that there are something in the region of 20,000 of the entities globally including up to 6,000 in the US alone.
The 2023 Global Family Office Compensation Benchmark Report provides a positive outlook for those who may be wanting to leap into this area of wealth management.
Four in 10 family offices who took part in the report’s survey had expanded their team in 2022 and a similar share expected to do so in 2023.
Compensation packages
The uniqueness of these wealth managers requires an equally unique skill set, but the report highlights how working out compensation has been challenging.
That’s because family offices are more personal and individual than a traditional asset management or investment firm and while professionals with this background are in demand, they may find it hard to compute the less structured compensation of family offices compared to an investment bank.
So how much could you earn in a family office?
The report shows that in the Americas, compensation packages range from less than US$60K per year as an investment analyst to as much as $264K as a portfolio manager (based on the largest share across income bands), while 3% of PMs are earning $1m+.
For CEOs of family offices, most in the region are earning $198K-$264K while the highest single share (26%) of chief investment officers are paid more than $1 million.
Across the global survey, the report found that 80% of Family Office professionals receive a performance bonus which can reach over 200% of their basic salary.
Flexible working is prevalent with 74% of family offices facilitating working from home.
Greg Limb, KPMG Private Enterprises’ global head of Family Office and Private Client, said that the industry is on an upward trajectory.
“The data confirms that irrespective of location, family offices are thriving with growth in terms of numbers and size, all of which shows no signs of abating,” he said. “This means the demand for staff within this sector will continue to make it an attractive and stable place for people to work and carve out their career.”
