Asset management firms have recently been looking to investment consulting firms as they recruit institutional staff.
Among the consultant staff that have recently departed for positions at asset managers are: Asset Consulting Group senior consultant Robert Moreland for private equity firm BerchWood Partners; consultant Anthony “Bud” Pellechia for Amalgamated Bank; former Hewitt Associates director of research and Clark Strategic Advisors consultant Matthew Clink to High Pointe Capital Management; and Evaluation Associates senior consultant Fred Schaefer to Schroder Investment Management.
On the consulting research and marketing side, some recent movers include: former Rogerscasey director of sales and marketing Matt McCormick heading to AllianceBernstein Institutional Investment Management; former Marco Consulting research director Lisa Kastigar moving to funds of funds manager Grosvenor Capital Management; and former Evaluation Associates head of international research Matthew Allen joining Clay Finlay.
These hires suggest that asset managers are specifically searching out these types of professionals for their firms. One of the perks of hiring a consultant is the immediate access one can receive to plan sponsors and other institutional investors. “Doors just open for you,” says Dave Morris at executive recruiting firm Heidrick & Struggles. He adds, however, that these are smart people who understand the products and can answer questions on the strategies. “You are getting embedded knowledge.”
Doug Jarrett, a partner at BerchWood, says the firm was specifically searching for a consultant when it hired Moreland as its new director of research. “We want to be on the forefront of private equity and he can do that,” says Jarrett. “He has a skill set that is helpful for emerging trends and he also has something a little extra on the analytical side. In addition, he can get involved in the early stages with potential clients.”
Many times, however, executive search firms are bypassed for this type of hire, with many of the hires coming from the relationships that are forged between asset managers and consultants, whether it be professional or personal. In this instance, Moreland knew firm co-founder David Berchenbriter personally for about 10 years. Moreland says he was able to become familiar with the company through his relationship with Berchenbriter. While recruiters say searches have picked up for consultants, many of these types of hires are done without a search firm.
Craig Randall, Managing Director for the Chicago office at executive search firm DHR International, says he has done eight or nine similar searches this year and has noticed a small spike in interest recently.
Despite the movement recently, not all consultants or other members of the consulting industry are right fits. “So often you see the resumes with good universities and good experience, but when you start to push a person and ask them to talk about a company for a while, they fall short,” Randall says. “What we are looking for is a brilliant consultant who brings an unbiased view and who is free of bad habits.”