Case Study

From Gap to Growth: Recruiting the Top Performer for Asset Management Excellence

Through strategic recruitment tactics, a prominent asset management firm addressed a significant gap in a high alpha potential category by recruiting top decile performers, successfully filling the void while also achieving remarkable growth.

By Dominic Freud

The Client

Our client is a large asset management firm with $100 billion in assets under management (AUM). Renowned for consistently delivering alpha to investors, they have solidified their position as one of the top performers in the industry. With a strategic focus on maintaining best-of-category products, the firm’s recruitment strategy is exclusively focused on hiring top decile performers. While the firm has garnered a reputation in Global and International equities, they had a notable gap in an alpha rich and high fee category within their portfolio.

The Solution

To address the gap in the alpha rich category, Boyden conducted a comprehensive analysis of the five-year track records of all mutual funds in the category. From over a hundred potential candidates, we identified three managers who exhibited exceptional performance and potential alignment with our client's objectives. One of these managers boasted the top track record among the candidates but was affiliated with a less influential firm than our client. Despite a reputation for being elusive and avoiding interactions with search professionals, we leveraged our network and identified a colleague with a connection to the manager. With their assistance, we were able to connect with him through a direct and personalized approach.

The Process

Upon reaching out to the top candidate, we outlined the opportunity, highlighting the potential for growth and alignment with our client's strategic objectives. Through effective communications, we successfully conveyed the upside of the role, prompting the candidate to agree to engage in discussions with our client. Additionally, we secured another top candidate, ensuring a contingency plan was in place. As discussions with the top candidate progressed, it became evident that the new geography offered by our client was an ideal fit for him, aligning seamlessly with his professional aspirations. Our client presented a compelling offer to the candidate, which included a three-year guarantee for multiple millions per year. Despite being lower than his previous compensation, the offer was structured to provide greater upside potential, enticing the candidate to seriously consider the opportunity.

The Result

The culmination of our efforts resulted in the successful recruitment of the candidate, who accepted the offer to join our client. Upon joining, the placed candidate launched a new fund and swiftly delivering best-in-category performance within the first three years of operation. Our client did an excellent job effectively positioning the fund to investors, attracting significant interest and inflows. Within three years since its inception, assets under management at the fund surpassed the $5 billion mark, translating to an incremental $50 million in management fees for our client. Notably, the candidate's compensation structure, which included a percentage of the fees, resulted in annual compensation reaching double-digit millions, underscoring the exceptional value delivered to both our client and the candidate.

About the Author
This website uses cookies to ensure you get the best experience on our website. Learn more