Hedge Fund Administrators
There are approximately 200 hedge fund administration firms in the United States. These firms oversee 80 percent of all hedge fund assets under management (AUM), according to PricewaterhouseCoopers. These firms are owned by banks, non-banking businesses, large public accounting firms, and independent service providers. The remaining hedge fund administration employees work directly for hedge funds. Today, there are approximately 16,000 hedge funds in the world.
According to Pension & Investments, the top hedge fund firms by AUM as of June 30, 2019, were:
- Bridgewater Associates
- Renaissance Technologies
- Man Group
- AQR Capital Management
- Two Sigma Investments/Advisers.
It can be difficult to land a job—especially if you don’t have a lot of experience. If you’re in this situation, a good approach is to seek out employment at a public accounting firm (such as EY and PricewaterhouseCoopers) that provides fund administration (FA) services to hedge funds or other alternative investment firms. Several years of on-the-job experience will make you a better candidate when you are ready to apply at a fund administrator. You can also apply for general accounting and auditing positions at investment banks that have fund administration practices, and, with experience, transition into the FA department.
If you already have industry experience, visit the Web sites of fund administrators to learn more about career opportunities. The Web sites of the largest firms offer advice on applying for jobs, preparing your resume, and performing well during the interview process. At many sites, you can apply for jobs. HedgeCo.net provides a list of hedge fund administrators at https://www.hedgeco.net/service-providers. Use this list to identify potential employers.
An accountant who is employed by a fund administrator can advance to the position of chief accountant, and then to chief fund administrator. Highly skilled fund administrators might move into executive-level positions such as chief financial officer, CEO, or chief operating officer.
Tips for Entry
Join professional associations such as the American Institute of Certified Public Accountants to access training and networking resources, industry publications, and employment opportunities.
Visit https://www.globalcustodian.com/directory-type/hedge-fund-administrators for a list of more than 120 fund administration firms in the United States and around the world.
Visit https://www.thiswaytocpa.com/work-experience/plan-career for information on accounting education and careers.