High School

Relationship managers not only need top-notch communication skills, but they also need financial acumen. To develop these skills, take classes in English, speech, finance, business, economics, marketing, accounting, statistics, and mathematics. Foreign language, computer science, and psychology courses will also be useful.

Postsecondary Education

A minimum of a bachelor’s degree is required to work in the field, but many employers prefer those with master’s degrees. Relationship managers have a wide range of educational backgrounds, including degrees in communications, finance, accounting, economics, quantitative finance, business, marketing, communications, and public relations. While in college, it’s important to create a balanced educational plan that provides both experience in business/finance and communications. If you pursue a degree in communications, for example, you need to double-major or minor in finance, business, or accounting, or at least take a significant finance-oriented course load.

Certification

The Chartered Alternative Investment Analyst Association offers the Fundamentals of Alternative Investments Certificate Program. In this online, self-paced course, you’ll learn about traditional vs. alternative investments, hedge funds, investment returns and risks, due diligence, risk management, and other topics. Visit https://caia.org/programs/fundamentals for more information. 

Other Education or Training

Relationship managers must be experts in alternative investments, finance, and customer service. Many keep their skills up to date by participating in continuing education (CE) classes, webinars, workshops, and seminars that are offered by professional associations. For example, the National Investor Relations Institute occasionally offers seminars on investment relations and corporate communications. Topics include accounting essentials, capital structure and allocation, corporate finance essentials, financial analysis, and valuation. The following professional associations also offer CE opportunities: Alternative Investment Management Association, Canadian Investor Relations Institute, CFA Institute, International Association for Quantitative Finance, Investments and Wealth Institute, and CFA Society New York, New York Alternative Investment Roundtable, and CFA Society New York. Contact these organizations for more information. 

Investment banks also provide extensive on-the-job training via classroom instruction, webinars, and self-paced individual learning. For example, Goldman Sachs offers Goldman Sachs University (GSU, http://www.goldmansachs.com), an internal training and development resource that features more than 4,000 classes offered in classroom, webcast, and e-learning formats. Each year, more than 98 percent of its employees attend one or more GSU programs.

Certification or Licensing

There are no specific certification credentials available for hedge fund relationship managers, but some earn certifications that allow them to develop a mastery of finance, communication, and other skills. Here are some common certifications held by relationship managers: 

• Chartered financial analyst (which is administered by the CFA Institute, https://www.cfainstitute.org/en/programs/cfa)
• Chartered alternate investment analyst (Chartered Alternate Investment Analyst Association, https://www.caia.org) 
• Chartered investment counselor (Investment Adviser Association, https://www.investmentadviser.org)
• Chartered market technician (CMT Association, https://www.mta.org/cmt/chartered-market-technician)
• Financial risk manager (Global Association of Risk Professionals, http://www.garp.org/#!/frm)
• Investor relations charter (National Investor Relations Institute, https://www.niri.org/certification)
• Certified public accountant (American Institute of Certified Public Accountants, http://www.aicpa.org/BecomeACPA/CPAExam/Pages/CPAExam.aspx)
• Certified business relationship manager (Business Relationship Management Institute, http://brminstitute.org/professional-development/certified-business-relationship-manager-cbrm)

To become a relationship manager, you’ll need previous experience in lower-level positions in a prime brokerage environment or in the investor relations department of a hedge fund or other alternative investment firm.

Relationship managers frequently communicate with hedge fund managers via e-mail, telephone calls, and in-person meetings, so you’ll need to be a “people person” who is able to communicate effectively. You should be able to multitask since you’ll be managing many hedge fund accounts simultaneously. Other important traits include the ability to meet deadlines and work under pressure; excellent research and problem-solving skills; and a deep understanding of the hedge fund industry (including applicable government regulations, legal structures, operational requirements, and how hedge fund products trade, settle, and are accounted for). Relationship managers should also be proficient in Microsoft Office (Excel, Word, PowerPoint) and customer relationship management software.