Nearly 70% of hedge funds are having a difficult time retaining back-office personnel, and 60% don’t have enough staff, according to a survey of more than 500 chief financial officers at hedge funds with $100 million or more in assets under management, by accounting firm Rothstein Kass.
“Hedge funds have seen tremendous inflows of capital in recent years, a trend that has accelerated as sophisticated investors seek to mitigate risk in volatile market conditions,” said Howard Altman, co-managing principal of Rothstein Kass. “The rapid pace of industry growth has left back offices more pressured than ever before. Firms of all sizes are struggling to retain qualified personnel amid existing staffing shortages, including the CFO and COO levels. These problems will only be exacerbated by the industry’s increasing institutional focus, since these investors generally demand stricter reporting and compliance capabilities.”
“It was clear to us from our daily interactions with clients that back-office staffing concerns are pervasive across all segments of the hedge fund industry,” added Todd Noah, principal in charge of the Rothstein Kass Executive Search Group.