Asset managers often wonder why elite talent isn’t flocking to their door. The truth? They’re looking at the wrong signals and making predictable mistakes in how they evaluate people. Here’s the real breakdown.
1. Off-Paper vs. In-Person
Too many firms rely solely on resumes. They’ll glance at a CV, shrug “meh,” and move on without ever considering whether that person is a killer on paper.
The reality is you can’t judge grit, work ethic, or cleverness through a resume. I’d rather you meet 10 candidates in person and find the one who outshines the rest, instead of cherry-picking based only on polished credentials.
And candidates? They make the same mistake, judging firms based on AUM instead of alpha.
One candidate turned me down for comp at a weak platform. He knew the fund was terrible, but he chose money over long-term value. Guess what? He’s still stuck at that platform today.
Lesson: Focus on alpha, not AUM. If the platform generates real alpha, your carry will be worth far more in the long run.
2. Scoring Matters
Two years ago, a candidate who raised $5B annually asked for $3MM in comp. Nine out of ten firms said it was too much.
But the one firm that took the bet? They went from $7B to $59B. That same candidate now raises $7.5B a year with a team that collectively does ~$20B annually.
That’s with a B.
He knew which platform would help him score bigger while compensating him fairly.
Guess who was his recruiter? AP.
3. Why Managers Miss Out
Here’s the brutal truth: 99% of managers don’t proactively scout talent. They wait until an opening pops up, then scramble to fill it.
If you’re not opportunistically hiring based on elite talent, you’ll never land a Cooper Flagg. Instead, you’ll keep running into red flags.
And HR? Don’t think saving on recruiting fees is a win. Last week, an HR leader passed because our fee was $250K.
But the candidate they declined generated $100MM in alpha in 2024.
Do the math.
Succession Insider Tip
If you’re serious about growth, stop thinking of recruiting as an expense and start treating it as an alpha generator. The right hire doesn’t just fill a seat; they change the trajectory of your platform.
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