Hedge funds poaching private bankers

Recruiters say hedge funds' eagerness to hire sales staff is leading them to the doors of private banks.

"Private bankers have become popular with hedge funds that are recruiting asset gatherers," says Peter Elliott, a director at recruiter Emerson Chase City. "I've got several openings for sales positions at hedge funds, and private bankers are their preferred talent pool."

Elliott attributes hedge funds' increased enthusiasm for private bankers to a general shortage of sales staff. "Asset raisers are massively in demand and clients are having to think outside the box. If they can't find someone with previous hedge fund experience, private bankers are the next best thing."

"If you're an asset gatherer in a private bank, you can absolutely find work as a sales person in a hedge fund," says Christian Sulger Buel, managing director of the private banking search firm Sulger Buel & Company.

The financial advantages of a move can be considerable. Elliott says asset raisers at small hedge funds are paid as much as 15%-20% of revenues generated by the funds they bring in.