James Maidlow

The Inverse Correlation of Increasing Head Count Versus Earnings Per Share (EPS) OR Aligning TA to Your Business Drivers.   As many of you know I read lots of articles on the share market and one of my absolute daily must read is Live Wire Markets. Today there was an article about how increasing head count can decrease EPS. Now as you also know I have been a huge advocate for Talent Advisory with TCS a venture with Simon Townsend help many organisations transform their recruitment teams into Talent Advisory teams. In addition, TCS has created a Strategic Scenario Game “Aligned to Achieve” to align your business drivers to TA Tactics in collaborative way. This article really reinforced the importance of this because increasing head count makes TA busy but our company may become uncompetitive. Here are some further thoughts….. From an economic perspective, the relationship between EPS and employee growth isn't always direct. While increasing headcount is often a sign of business growth and expansion, it doesn't automatically translate into immediate profitability or EPS growth. This is because the costs associated with hiring and onboarding new employees can be substantial in the short term. Increased salaries, benefits, training, and the indirect costs of integrating new employees into the company's operations all add up, potentially diluting EPS in the short run. However, the strategic value of talent acquisition should be viewed through a longer-term lens. Strategic hiring should be about more than filling immediate gaps; it’s about investing in human capital that can drive future growth and improve operational efficiency. Here, the concept of Talent Advisory being "Build, Buy, Borrow, and Bot" becomes crucial. This approach encourages a holistic view of talent management: ·     Build: Developing existing employees to meet future challenges. ·     Buy: Acquiring new talent that brings in the necessary skills and capabilities. ·     Borrow: Utilizing contingent workers or consultants to manage variability in demand without the long-term cost commitment. ·     Bot: Implementing automation and AI to handle routine tasks, freeing human capital for more complex activities. In conclusion, while the short-term impact of increased headcount might show a dip in EPS due to initial costs, the long-term strategic approach to talent acquisition should focus on aligning hiring with business drivers and growth opportunities, ensuring that employee growth contributes positively to financial performance and sustainability. If aligning Business Drivers to your TA strategy is important either with Talent Advisory or just with normal Talent Acquisition please contact me, we can play Aligned to Achieve and also help you transform your your team from Recruiters to Advisors. David Bell James Elliott Rita Newman Gareth Flynn Sue Howse Paul Zauch Shane Little Adam Walker Darren Morris James Telfer (he, him) love your thoughts.....            

18

4 Comments

Hiring is always a risk Reducing that risk is regularly sold in a irrelevant personality profile test or magic question What increases the chances of high performance What can you do that many #privateequity firms continue to make the mistake of https://lnkd.in/eqkQb_kB #privateequity #search #hiring

2

Thanks Leonard Ng from Sidley Austin LLP for sharing this update on the current UK/EU regulatory landscape. An insightful read covering important topics & regulations impacting the investment management world. https://lnkd.in/dq2UE7CZ

3

AXA IM Prime has invested in Rivage AXA IM Prime is acquiring a 20% equity stake in Rivage Investment, a European Infrastructure direct lending firm with over €7.7 billion in committed capital. This collaboration is set to accelerate Rivage’s growth and international expansion, leveraging AXA IM Prime's extensive experience and strong market presence. Rivage Investment has managed over €8.2 billion for top institutional investors since 2013, establishing itself as a leading European independent infrastructure debt manager. The firm specialises in sustainable credit strategies, ranging from investment-grade public sector and core infrastructure debt to high-return senior secured financing and impact climate solutions. AXA Investment Managers a long-standing investor in Rivage’s strategies, aims to support Rivage’s new initiatives and further deploy capital into its high-return infrastructure debt strategies. This partnership is expected to enhance Rivage's capacity to finance significant infrastructure, public sector, energy transition, and decarbonisation projects. https://lnkd.in/evFytDwE #Infrastructure #Investment #Growth #Sustainability #EnergyTransition

42

Actively or passively looking at FD or CFO level in the funds space? Here’s some key trends: > It’s been a tight market, driven by difficult fund raising conditions, a flat deals/exit market, liquidity challenges, and a whole host of broader economic challenges that have impacted growth. You know this and I’m sure like me you’re bored of hearing it! Net result, stagnant Senior Finance market across most asset classes. > Q2 so far has seen a very slight uptick in activity, linked to the usual seasonal movement of people post YE and bonus payouts. Remember to rattle your network and look under every rock. Your network is vital when the markets are tight. > A bit of a generalisation, but bigger funds seem to be in the early stages of growing again and in a few cases are adding senior Finance/Operations hires BUT it’s still slim pickings out there. I’ve spoken to a lot of senior Finance folk, especially from smaller houses, looking to move to bigger managers for perceived stability, ie: bigger fundraising funnel, more likely to be growing in a flat market, long term ability to weather future storms etc. > Reasons to be positive: Q2 always sees the highest volume of Senior Finance mandates hit the market. This year my best guess is that three quarters of those hires will be linked to attrition - ie: normal churn of people retiring, going on sabbatical, moving internally, leaving completely or falling on their sword/being replaced - and a quarter will be related to growth or new hires. What we need is the growth number to increase, as that fuels the attrition number. > I’ve spoken to a lot of people in number 1 or number 2 Finance roles in smaller managers across private markets funds who are concerned their current firm is running on fumes or lacking any growth plans or a way out; usually down to struggles with fund raising and/or inability to sell or buy assets. If you’re in this boat you’re not alone and that’s always the blessing and the curse of being in a senior Finance role, seeing the numbers before anyone else. Stay put and don’t jump for anything is obvious advice here. > Compensation. There’s (un)fortunately a lot of very passive or ‘casually browsing’ senior Funds Finance people with half an eye on the market. Base salaries and total cash comp continue to remain flat. The market in terms of base salary below £150k is ‘busier’. North of this it’s still very patchy. > Golden rule: more is more and you need to reach out to as many people as possible who can help you. Hustle hard, stay positive.

16

As a search consultant for hedge funds, I often discuss with clients how quickly I can present suitable candidates. The timeframe can vary dramatically—from as little as a few minutes (in extreme examples), to several months. This variability largely stems from candidates' personal and professional commitments. Whether it's family obligations, work schedules, or other interviews, these factors play a significant role in their availability. Most hedge fund professionals are well-compensated and content, making them selective about career moves. They often entertain multiple offers, complicating scheduling further. While I aim to expedite the recruitment process, it’s important to recognise that some factors are beyond our control. Recruitment is fundamentally a people business, demanding flexibility and understanding. At Zeno Investment Partners, we navigate these challenges, ensuring optimal outcomes for our clients and candidates.

4

Senior Portfolio Manager: "3 reasons my colleagues have left the fund and 4 consequences they faced taking the deal.” Recently, an experienced Portfolio Manager shared some interesting observations with me... Their colleagues were enticed by: Big Guarantees: The allure of a substantial financial guarantee. Better Pay Deals: The promise of higher percentage pay-outs. Increased Seniority: The aspiration for a more senior role while retaining the benefits of their current position. And he noticed them facing a few unexpected challenges: 1️⃣ Increased Politics: Their new and greater responsibility led to unforeseen political dynamics. 2️⃣ Performance Decline: Details overlooked during the transition negatively impacted their performance. 3️⃣ Reduced Collaboration: Higher percentage deals meant sacrificing team performance. It was going to take the best-in-class team to get the best results. 4️⃣ Unforeseen Constraints: Their new role came with tighter risk limits, overlapping strategies, and less feedback. In our conversation, it became evident that even logical, data-driven professionals like traders and researchers can succumb to emotional decisions. Just as they eliminate emotions and biases in their work, they could apply the same approach to their career planning. We debated what the colleagues could have done to avoid these scenarios. 👉 Evaluating all aspects of a potential move was a given. 👉 Anticipating challenges was another. 👉 Taking more time to make a well-informed decision. 👉 Applying a rational approach that they use within their day-to-day trading. We agreed that this would lead to their decisions being beneficial to them in the long run. From your experience, what would you advise someone looking to move funds? 

12

5 Comments

Why is Private Equity falling out of love with Consumer Goods company? From London to NYc, from high Fashion to mass market - the consumer sector turn down has been scaring off PE funds this year Growth concerns were part of the reasons that selloffs stripped close to $4.8 trillion off global equities in just three days over the summer Burberry has let go of its CEO and gave profits warning, its shares erased almost one fifth of their value on earnings day... Price elasticity has reached its limits, consumers are looking for alternative ways to spend their money 💰 and the luxury car market or aviation also suffer from the same declining demand. Time for a change if we want PE firms to remember their first love ❤️ #investment #luxury #consumers #bethechange

26

4 Comments

The year started out with lots of promise locally …..however we are starting to see some cracks in the markets. As the US signals that it may delay rate cuts, this has some punishing and obvious effects on the local markets and its policies — In addition, volumes have been slow as foreign outflows increase, inflation remains “sticky” and war tensions increase in the Middle East. I still remain bullish on Brasil for the second half of this year and beyond. Some Tier II house’s continue to expand there Equity platforms with Trading and Investment banking hires, this will continue throughout this year along with new entries into the markets — so not all bad. I would like to speak with Latam Equity Sales candidates, ideally VP / Director level with a US rolodex of relationships, clients. Would also speak with Latam ECM, Research Analysts that could cross over to sales. This is a sell side role based in New York. (Non - sponsor position). My client, a Brasilian Broker with global Partnerships is seeking a Latam Equity Sales Trader / Trader. Should have Brasil and UK / European Institutional relationships, clients. Ideally VP / Director level, this is a sell side role that can be based in London or New York. Fletcher Kosut Buzios Consulting Group [email protected]

19

#Recruiting in the #assetfinance sector presents unique challenges and opportunities. Here are some insights to consider: ***Understanding Specialised Roles: Asset finance includes various specialised roles such as credit analysts, asset managers, and risk assessors. A deep understanding of these roles and their specific requirements is crucial for effective recruitment. **Industry Knowledge: Candidates with a background in finance, leasing, or related fields tend to be more desirable. Having a thorough knowledge of the industry’s trends, regulations, and financial products can help recruiters identify the right candidates. **Soft Skills Matter: While technical expertise is important, soft skills like negotiation, communication, and relationship management are critical in asset finance. Candidates who can build and maintain relationships with clients and stakeholders are often more successful. **Emphasising Compliance and Regulation: The asset finance sector is heavily regulated. Highlighting compliance knowledge and experience during recruitment can attract candidates who understand the importance of adhering to legal and regulatory standards. **Diversity and Inclusion: Promoting diversity in hiring can enhance team performance and innovation. Actively seeking candidates from varied backgrounds can lead to a more dynamic workforce that can approach problems from different perspectives. **Leveraging Technology: Use of data analytics and recruitment software can streamline the hiring process. Additionally, familiarity with fintech innovations can be a plus, as many asset finance firms are incorporating technology into their operations. **Employer Branding: Creating a strong employer brand that highlights company culture, values, and growth opportunities can attract top talent. Potential candidates often look for organisations that align with their personal values. **Networking and Industry Events: Engaging in industry conferences and networking events can help recruiters meet potential candidates and understand the current market landscape, providing insights into talent availability and competitor strategies. **Retention Strategies: Focusing on retention strategies is equally important. Offering ongoing training, clear career pathways, and a positive work environment can help retain skilled professionals in a competitive market. **Flexibility and Adaptability: The asset finance sector is evolving rapidly. Candidates who demonstrate adaptability to change and a willingness to embrace new technologies will be valuable assets to any organisation. By understanding these dynamics, business owners, hiring managers and recruiters can better navigate the complexities of hiring in the asset finance sector and find candidates who not only meet technical requirements but also fit the organisational culture. Happy Hiring 😊

3

Top 20 wealth managers / private banks by AUM A stat that interested me: “There was a significant difference in the AUM of the top 20 managers. While the top seven have AUM of over £50 billion, to make the top 20, a manager needed just £17.5 billion in AUM, arguably demonstrating the fragmented nature of the UK wealth management industry.” Thanks Amit John #wealthmanagement #AUM #thewealthnet #stephensonexecutivesearch

50

9 Comments

“Money doesnt recognise geography” This is a session hosted by national and international #investors at #climb24 We have over 200 investors from all over the world coming to find great businesses to invest in - and none of them care where they are based I am never going to complain about more money being invested in the region but #founders need to get their businesses in a shape to compete for investment on a national and international level The UK is the 3rd largest country for VC so we do have money on our doorstep Equally with our partners Department for Business and Trade we will be talking about how both funds and businesses can access international investment The challenge i think is that often businesses in the north just dont know what is available and how to access it Join us at climb24 on 5th and 6th june to lean - honestly everything you need is on your doorstep!!! And a ticket is less than the price of a train to london and a hell if a lot more fun !!!! UBS British Business Bank Innovate UK Innovate UK Knowledge Transfer Partnerships Department for Business and Trade VeUP Barclays Eagle Labs Squire Patton Boggs Lloyds Banking Group Mishcon de Reya LLP West Yorkshire Combined Authority Leeds City Council South Yorkshire Mayoral Combined Authority Nexus Leeds Leeds Digital Bobble AI Bionow GreenTech Gathering EHE Ventures Sure Valley Ventures Balderton Capital Beringea Eka Ventures Redrice Ventures Newlab Fuel Ventures 🚀 IQ Capital Albion Capital Group LLP YFM Equity Partners Foresight Group Equity Gap Par Equity River Capital Development Bank of Wales Oxx MERCIA INVESTMENTS LIMITED Maven Capital Partners Teampact.ventures Start Codon

10

10 Comments

I remember a fund telling me they only hired out of Goldman 15 years ago. And back then it was achievable. No chance now. See below: Why is this happening? 1) Inv Bankers are staying put (paid too much to leave, cost of living) 2) Infra bankers wanting non-infra private equity 3) Infra funds not paying carry for the most part (Note these numbers aren't exact, and just a best guess from me, and only referring to an "Associate" level search, so just the "Associate level" numbers)

40

PE News Weekly 📈 📍 SumUp, a London card reader maker, secured a €1.5bn private credit loan led by Goldman Sachs, with other big players joining. The funds will refinance debt and drive global growth. The loan, one of Europe's largest recent private credit deals, is priced at 650 basis points over the benchmark rate. New investors include AllianceBernstein, Arini, Deutsche Bank, Fortress, and SilverRock. 📍Brookfield will invest $1.5bn for a 51% stake in Castlelake, a private credit manager focused on asset-based investments. The deal will expand Castlelake's business, including aviation and specialty finance. Castlelake will retain its independence and leadership. The transaction, expected to close in Q3 2024, highlights Castlelake's strength in asset-based investments. Advisors include Evercore and Paul, Weiss for Brookfield, and Goldman Sachs & Co, Colchester Partners, and Kirkland & Ellis for Castlelake. 📍 Peloton's shares surged 18% amid reports of private equity interest in a buyout. The fitness company seeks debt refinancing after 13 quarters of losses. Talks with one firm have begun, while others eye Peloton as an acquisition target. Market cap fell from $49.3bn to $1.3bn, prompting the move. CEO departure and job cuts aim to reduce costs. Peloton's future as a public company remains uncertain. 📍 Blackstone, KKR, and Sony Group are considering acquiring Japan's online comic store, Infocom, in a potential $1.28bn deal. Infocom's parent company, Teijin, plans to sell its 55% stake, with bidding scheduled for mid-May. Bidders aim for a full acquisition, valuing Infocom at JPY200bn. Infocom operates MechaComic, one of Japan's largest digital comic sites, with a market cap of JPY171bn. #privateequity #privateequitynews #rawselection

2

𝗨𝗦 𝗡𝗼𝗻-𝗖𝗼𝗺𝗽𝗲𝘁𝗲 𝗟𝗮𝗻𝗱𝘀𝗰𝗮𝗽𝗲 - 𝗤𝘂𝗮𝗻𝘁/𝗧𝗲𝗰𝗵𝗻𝗼𝗹𝗼𝗴𝘆 𝗶𝗻 𝗡𝗬𝗖 𝗮𝗻𝗱 𝗖𝗵𝗶𝗰𝗮𝗴𝗼 With the recent news regarding US non-compete ban legislation in motion, there will be a huge impact on the highly competitive and secretive Hedge Fund and Prop Trading industry, where non-competes have been spiralling over the past few years, to the point where most people have 12 month minimum and very often up to 24-36 months. Many people feel like they are shackled to their position by a multi-year sit out, meaning they may hold on to their current position when they would ideally want to move on. Part of this plays on top of the occasional uncertainty about sitting out over that period and being 'out of the market' that is especially found in trading/investment employees. Being able to swiftly join a new team also increases your profiles attractiveness to a new firm and their plans to grow. This can translate not only to better offers, but a chance to earn bonuses and upside comp while you'd likely be earning a lesser amount during your NC. Feel free to reach out if you're interested in hearing what the market looks like ahead of these regulation changes, mainly focused on New York or Chicago across Portfolio Management, Quant and Technology: [email protected] Rahnpreet Sandhu

23

Izzy Englander's Millennium Management is set to raise $7-$10 billion using a new capital structure, ensuring a more permanent source of funds. By adopting a private equity-style approach, clients make pledges that Millennium can access over time, offering more stability and mitigating the risk of mass withdrawals. Interestingly, not all multi-managers are facing a positive outlook. A recent Goldman Sachs report shows that some firms have suffered net client withdrawals of over $30bn in the 12 months to June — the first since 2016. Millennium’s innovative approach demonstrates that, despite industry-wide challenges, some firms are not just weathering the storm but evolving to thrive. #hedgefunds #quantitativeresearch #portfoliomanagement #financialmarkets #quantitativefinance #investment https://lnkd.in/dMRBtzVh

15

2 Comments

Positive signs across the Investment Markets ● Goldman Sachs is increasing Credit Lines for Private Equity firms, as deal making grows ● The ADGM is reporting a surge in AUM, and an influx of international managers ● The DIFC saw over 5,000 new jobs created in 2023, with numbers continuing to grow in Q1 (in an area of just 110 acres) ● We're seeing existing clients in the region increase the volume of Institutional Sales & Investment roles, and we're receiving record numbers of inbound investment clients looking to hire ● Sovereigns are reaching new AUM records, and we're seeing several new Sovereign subsidiaries and cross-country Sovereign JVs ● Older news, but the UAE has been removed from the FATF grey list, potentially increasing investor confidence in the region ● Hedge Funds continue to relocate senior traders and PMs to the region

70

3 Comments

📈 Pass-Through Fees: Too Much of a Good Thing? Man Group’s careful approach to pass-through fees could be a signal they’re listening to investors fed up with rising costs—but will it be enough to shift sentiment? Man Group has just announced that its new capital for the Man Strategies 1783 fund will come with pass-through fees, joining industry giants like Millennium and Citadel in this practice. While these fees help multistrats hire top talent and invest in cutting-edge infrastructure, they’ve also sparked growing investor fatigue. However, Man Group seems aware of this exhaustion, as they’ve opted for reduced management and performance fees (1% of net assets and 15% of profits) and have focused on passing through only certain costs—mainly compensation—rather than the full range of expenses that other funds charge. This distinction may offer some relief to investors wary of the ever-expanding fee structures seen elsewhere. As more funds without the pedigree of Man or Millennium adopt this model, the question arises—are investors nearing their breaking point? Many institutional investors are becoming increasingly weary of these costs, particularly at a time when they are looking for more efficient, cost-effective investment models. With fees as high as 10% of net assets, some fear that firms may not be incentivised to keep costs lean. Is the allure of steady returns enough to justify the added expenses, or will we see a shift in how investors approach multistrats? #hedgefunds #quantitativeresearch #portfoliomanagement #financialmarkets #quantitativefinance #investorrelations #alternativemodels https://lnkd.in/dG_X94WR

10

1 Comment