Big Payoff for Marketers

Date: Tuesday, September 11, 2007
Author: HFN Daily Report

Marketers of hedge funds can expect to make up to $675,000 a year in their second full year at a fund, according to a new study by Schwab Enterprise.

The study, entitled "Pay Me," looked at salaries of marketers and investor relations personnel at hedge funds. Schwab interviewed more than 250 marketing and IR professionals and more than 15 major hedge fund clients.

Schwab is a hedge fund service provider specializing in executive search, capital introduction and media research. Founder Claude Schwab said the firm instituted the study after noticing an increase in the number of marketers and IR personnel the firm had been asked to recruit.

A marketer with at least three years of experience in the industry can expect to make $225,000 to $675,000 a year at a strongly performing fund during the second year with the fund. That figure dropped to $200,000 to $350,000 at weaker performing funds, the study found.

Someone who has completed two years in investor relations at an established fund with more than $1 billion in assets can expect to make $105,000 to $200,000 in total compensation, according to the survey. Base pay can run from $60,000 to $120,000, regardless of fund performance, but IR professionals make considerably smaller bonuses, only $20,000 to $75,000, at weaker performing funds.

The salaries seem to indicate a greater importance of marketing for hedge fund firms. Schwab points out three years ago most hedge funds were content to be in the $3 billion to $5 billion range. Now, firms want their funds to be considerably larger, and Schwab says the demand for marketers and IR professionals with finance backgrounds is stronger than it has ever been.