Hedge Fund Administrators
Overview
Introduction
Hedge fund administrators provide fund accounting, tax administration, financial reporting, investor servicing, and other middle- and back-office services. Third-party hedge fund administrators (HFAs) oversee 80 percent of all hedge fund assets under management (AUM), according to PricewaterhouseCoopers. The remaining hedge fund administrators are employed directly by hedge funds.
Quick Facts
Median Salary
Employment Prospects
Minimum Education Level
Experience
Skills
Personality Traits
Earnings
Hedge fund administrators earned average salaries of $45,835 in 2020, according to PayScale.com. Salaries ranged from $31,000 to $77,000.
Hedge fund accountants with one to three years of experience received salaries that ranged from $42,000 to $79,500 in 2020, according to Robert Half Finance & Accounting. Those with three to five years of experience earned between $54,250 and $102...
Work Environment
The work environment at fund administration firms is relaxed but professional. At some firms, employees dress in business casual—unless they are meeting with clients. Some of the largest fund administrators offer flexible schedules (including work-from-home options) and encourage their employees to find a good work/life balance. Overall, work in fund administration is far less stressful than if...
Outlook
Opportunities should continue to be good for hedge fund administration professionals because they provide much-needed third-party transparency for the hedge fund industry. “Cost pressure on hedge funds continues to grow and it gets harder to justify the old 2/20 fee structure that used to be almost unquestioned,” according to ValueWalk.com, an online financial publication. “As fees continue dro...
