Hedge Fund Relationship Managers
Overview
Introduction
Many investment banks have prime brokerage departments that provide financing, brokerage and trading, custody, information, risk management, and administrative services to hedge funds. These services help the fund grow its business, attract investment capital, and operate smoothly. Relationship managers act as the go-between between the prime brokerage department (and other departments at the investment bank) and hedge funds. They educate hedge fund managers about the services provided by the prime brokerage and connect them to key ...
Quick Facts
Median Salary
Employment Prospects
Minimum Education Level
Experience
Skills
Personality Traits
Earnings
Hedge fund relationship managers earned average salaries of $87,645 in 2024, according to GlassDoor.com. Earnings ranged from $70,000 to $109,000. They received additional annual compensation (e.g., profit-sharing, bonuses) of $32,000 to $59,000.
Prime brokerage relationship managers employed in New York City earned median salaries of $231,000 in January 2016 (the latest year for which d...
Work Environment
This career is fast-paced and sometimes stressful because hedge fund managers need information and other services quickly, and tens-of-millions of dollars are at stake if the relationship manager can’t fulfill a request promptly. Relationship managers work in traditional office settings. They must be available whenever a hedge fund manager needs them—so this job can involve work at nights and o...
Outlook
"Wall Street is raking in record revenue from prime broking as banks look to build deeper ties with their lucrative hedge fund clients," according to a 2024 story published by Financial News (a subsidiary of Dow Jones & Company, Inc.). The top 12 investment banks that offered prime services saw revenues rise to a record $20.4 billion in 2023, according to Coalition Greenwich (a glo...