Asset managers hiring tech execs to streamline processes

Companies look for chief technology officers with experience in outsourcing, shared services
OCT 25, 2010
Investment management firms have a little bit more money to spend on hiring this year, and they are using those dollars to tap technology executives who are charged with cutting costs, according to executive search firm Russell Reynolds Associates Inc. Tech-related searches made up 20% of Russell Reynolds' buy-side-firm search business so far this year, up from 10% last year. “The fastest-growing area of our buy-side work is in technology and operations,” said George Wilbanks, managing director of Russell Reynolds' investment management practice. Although five years ago, firms were looking to hire chief technology officers who could install customer relationship management systems or other tools designed to acquire clients, that is no longer the case, he said. “A few years ago, firms would take 25% of their budgets and use it to install a big CRM system,” Mr. Wilbanks said. “Now they are looking to streamline their processes and outsource more businesses to cut costs.” As such, investment management firms are hiring CTOs with experience in outsourcing and establishing a shared-services model, Mr. Wilbanks said. A lot of those people are outside the industry, he said. “So few firms in financial services have these Six Sigma black-belt executives who understand how to do that stuff,” Mr. Wilbanks said, referring to the popular business management strategy. Meanwhile, hiring portfolio managers and other investment professionals has been relatively flat this year, he said. “There are a few searches going on for international managers,” Mr. Wilbanks said. “But there are fewer searches for investment professionals than there have been in past years.”

Latest News

Stratos Wealth Holdings closes 11 acquisitions in push for advisory scale
Stratos Wealth Holdings closes 11 acquisitions in push for advisory scale

RIA aggregator adds $4.8 billion in client assets across seven states as demand grows for alternatives to traditional succession models.

Beyond wealth management: Why the future of advice is becoming more human
Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management

Shareholder sues FS KKR Capital board, alleges NAV and dividend cover-up
Shareholder sues FS KKR Capital board, alleges NAV and dividend cover-up

Shareholder targets FS KKR Capital's directors over alleged portfolio valuation and dividend missteps.

UBS loses $1.2 million arbitration claim linked to variable annuities and margin
UBS loses $1.2 million arbitration claim linked to variable annuities and margin

UBS has a history of costly litigation stemming from the sale of volatile investment products.

'We are monitoring the situation,' SEC says of private funds
'We are monitoring the situation,' SEC says of private funds

New director David Woodcock puts firms on notice over fees, conflicts, and liquidity risk as private credit shows signs of stress.

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management

SPONSORED Durability over scale: What actually defines a great advisory firm

Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline