In the ever-evolving landscape of the investment management industry, where the dynamics of jobs and opportunities are constantly in flux, keeping a pulse on industry turnover becomes not just insightful, but imperative.
Dakota Marketplace, with its finger firmly on the pulse of the industry, has become a treasure trove of data, providing a glimpse into the most significant changes. In 2023 alone, we tracked and recorded over 900 job and role changes across various channels within the investment management industry.
It’s important to note that this data isn’t just numbers; it’s a reflection of the nature of the investment management world. Changes in jobs and roles within these channels highlight shifting trends, emerging opportunities, and the challenges professionals face in navigating their careers. Industry turnover is quite frequent, given the competitive landscape and the constant push for innovation and growth. However, this environment also presents a unique challenge: the difficulty of transitioning into new roles and firms within the sector.
Recognizing this gap, Dakota Talent seeks to bridge this divide.This specialized job board is meticulously designed for investment management professionals, providing them with an exclusive platform to explore new opportunities, connect with potential employers, and seamlessly transition into their next roles. Dakota Talent is more than a job board; it’s a testament to our commitment to making the life of fundraisers easier within the investment management community.
In this article we are going to review the channels with the most investment management industry turnover, and let you know where most of these individuals relocated after seeking a new job. By the end of this, you’ll have a better understanding of the job change trends we saw in 2023.
1. RIAs
From the 900 job and role changes we tracked in Dakota Marketplace last year, we discovered 242 people left RIAs. From this, it’s important to note that 164 of these people joined other RIAs. This could be for several reasons, but one we have said time and time again; the RIA channel is one you want to be in. With endless opportunities and new ideas, RIAs are a rich channel.
The other most popular channels people went to after leaving RIAs were broker-dealers with 15 people, followed by 11 people joining banks.
2. Consultants
Moving onto the second channel with the highest number of job changes is consultants, with 101 people leaving. Another notable point is 37 of these investment professionals went to other consultant firms.
Following this, 13 people joined RIAs, 9 joined broker-dealers, 7 joined public pension funds, and 7 joined banks.
3. Investment Firms
The third highest channel with the most job changes is investment firms with 73 people having left. Of these 73 people, we saw 20 join RIAs, 10 join broker-dealers, and 9 join family offices.
4. Public Pension Funds
Moving onto the fourth highest channel we saw the most job changes from Dakota Marketplace in is public pension funds, with 66 people leaving. 37 of these people left pensions to relocate to other public pension funds, and 5 people joined consultant firms.
5. Banks
Lastly, we saw a lot of movement within the bank channel. In Dakota Marketplace we tracked 60 total people leaving banks, with 21 of those joining other banks. Also to note, 10 of these people joined broker-dealers and 8 joined RIAs.
What does this mean?
Now, you may be wondering what conclusions can be drawn from this data on job changes from 2023. One important thing to note is we saw the majority of people leaving specific investment channels to join another firm within the same channel. This could be due to preferences, relations, specialties, etc. Secondly, a whopping total of over 900 job and role changes were recorded in Dakota Marketplace for 2023. That is a lot of turnover within the investment industry!
While it’s impossible to predict the most popular and desirable channels to work in, the investment management industry is a real gift to be a part of. The constant turnover we have referenced throughout this article shows there are a lot of people who return to other channels because it is such an amazing industry to be a part of.
Raising capital is extremely difficult, not to mention for an investment firm to find the right people to focus on the right channels for a specific strategy is not easy. Throw in market volatility, and in some cases a lack of money in motion, investment firms get frustrated and can be quick to pull the trigger on sales people. This leads to the need for ease of finding job opportunities or openings.
Dakota Talent solves this as it is a job board designed specifically for investment management professionals. It is the first of its kind solely dedicated to sourcing sales, distribution, and marketing roles for the investment industry.
To learn more about the first investment management industry job board, visit Dakota Talent.