Investing for the state
Middle East state investment funds are flexing their financial muscles globally. What are the chances of getting a job for one?
In recent weeks, the Abu Dhabi government has bought into US private equity group Carlyle, and the Qatar Investment Authority has bought into Swedish exchange OMX. Last year Dubai bought control of ports company P&O (including its Australian operations) as well as hotel company Travelodge.
As regional sovereign funds expand their geographical spread, recruiters say their requirements for skills are evolving. "Until recently, the region has looked only within [for staff]," says Peter Greaves, director of financial markets at recruitment firm McArthur Murray. "However, with volatility and a (nearly) real market, candidates who have experienced international and bear markets are now in demand."
Greaves says candidates are now sought with experience of investing in emerging markets including Eastern Europe, SE Asia/India, Malaysia and Turkey. Islamic investment skills are also popular.
Funds run by the Abu Dhabi Investment Authority (ADIA) are said to be hiring top asset management talent from mature global markets.
Karla Dorsch, founder of London-based recruiter The Piedmont Group, says, "They are trying to get the best people, those who understand the risk parameters in areas of classical investment management like real estate and equities."
She adds that despite the market for sovereign staff being "on fire", with funds becoming more competitive, they won't throw money at someone simply to fill a vacancy.
Sovereigns are notoriously discreet. However a senior recruiter tells us basic annual packages range from US$300k to US$350k for an MD or head of asset allocation, US$250k to US$300k for a director or fund manager, US$175k to US$200k for a senior analyst, and US$125k to US$150k for an analyst.
