1st March 2016
How much does it cost to run an asset management business? This might be a useful question for pension funds to ask. There have long been grumblings about paying excessive fees, especially for hedge funds and private equity. But no one seems to ask the deeper question of how much money a successful asset manager needs in order to operate.
According to George Cooper, CIO of Equitile, a new London-based equity manager, the answer is about £350,000 (€464,000) per key employee per year. That figure covers not just their salaries but other costs – administration, IT, rent, legal costs, and so on.