HomeFinance NewsFinanceFamily Offices Steal Top Talent from Wall Street, Sparking Salary Explosion

Family Offices Steal Top Talent from Wall Street, Sparking Salary Explosion


Talent war between family offices and Wall Street drives up salaries


Wealthy families are increasingly establishing family offices to manage their investments.

These offices typically cost over $3 million annually to operate, with staffing expenses being the largest driver.

The competition for talented professionals has intensified, as family offices compete with private equity firms, hedge funds, and banks for top-tier recruits.

The average annual operating cost for a family office is $3.2 million, but expenses can range from $1 million to over $10 million depending on assets under management.

Staffing accounts for a significant portion of these costs, as family offices seek to hire experienced professionals in investment management, private equity, and other areas.

As these offices expand their operations, they’re increasingly investing in alternative assets, such as private equity, venture capital, real estate, and hedge funds.

This shift brings them into direct competition with larger institutional investors.

To attract and retain skilled professionals, family offices are offering lucrative compensation packages, including competitive salaries, bonuses, and long-term incentives.

Lower-level staff are also demanding higher salaries, with some junior analysts requesting annual salaries of $300,000 or more.

Family offices are also adopting practices from private equity firms, such as offering carried interest, which is a share of profits when investments are sold.

The competition for talent is particularly intense with private equity firms.

As more single-family offices engage in direct deals, they seek to lure talent away from the likes of KKR, Blackstone, and Carlyle.

To mitigate this challenge, family offices are recruiting mid-level managers from private equity firms and empowering them with more authority and compensation.

They are also emphasizing the benefits of working for a smaller, more autonomous organization with direct access to billionaires and their networks.

The result of this fierce competition has been a significant increase in the cost of operating family offices.

However, it has also helped professionalize and institutionalize the industry, leading to the recruitment of top-tier talent and the implementation of sophisticated investment strategies.

  • Overall sentiment: positive
  • Positive

    “The biggest cost is staffing, which has become more expensive as family offices have tripled in number over the past five years.”

    “Family offices are increasingly competing with one another for senior talent, according to recruiters.”


    “Competition is even driving up salaries for lower-level staff.”

    “Competition with private equity firms is getting especially costly.”

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