From CNBC: 2024-05-03 11:22:43

A new study reveals that the average family office costs over $3 million a year to operate due to increased staffing expenses, with some spending more than $10 million yearly. Competition for talent is fierce, with family offices competing with private equity and hedge funds for top talent, driving up salaries for senior staff.

Smaller family offices spend less, with those managing less than $500 million averaging $1.5 million yearly, while those above $1 billion spend an average of $6.1 million. The biggest cost is staffing, with salaries for senior roles increasing significantly over the past five years as family offices expand their investments into alternatives.

Experts say competition for talent in family offices is driving up pay by 10-20% since 2019, with the average compensation for a chief investment officer ranging from $1 million to nearly $2 million depending on assets. Family offices are offering long-term incentive plans and higher salaries to recruit top talent from private equity firms.

Competition is fierce with private equity firms, with family offices now recruiting midlevel managers from PE firms and offering profit-sharing incentives. Family offices are becoming more attractive workplaces due to better pay, access to networks, and increased responsibilities, challenging big firms and banks for top talent in the finance industry.



Read more at CNBC: Talent war between family offices and Wall Street drives up salaries