Victoria Biggs, partner, Platinum Pacific Partners, continues her review of the job market with a look at another three sectors. Click here to read last week’s blog.

Funds management

Recruitment into investment teams in funds management has always been slow and methodical. Fund managers aim for return (obviously) but also stability. This need for steadiness results in little staff turnover, even to the point where it can become detrimental. The firm can find itself with an employee who is underperforming, but be unable to “upgrade” for fear of retribution from the asset consulting community.

The combination team stability, market volatility, and weak performance, means there hasn’t been much recruitment on the investment side for fund managers so far this year. But there are exceptions; firms who have recruited selectively, or established new teams – either through a global brand extending its presence to Australia, or experienced individuals setting up their own boutiques.

Distribution continues to be busy, on both the institutional and retail side. Having excellent distribution has become a key focus for fund managers over the past few years, and will continue to be important, particularly because investors are becoming increasingly sensitive to continued negative returns. Overall, however, I anticipate 2012 to be similar to 2011 in terms of recruitment in funds management; that is to say, subdued.

Private equity

The divide between the haves and the have-nots is growing in private equity. There have been a number of capital raises by certain funds, but others have given up. Consolidation in the sector continues and should do so for the years ahead, with some firms building on past successes and/or good timing, and others managing down existing portfolios and slimming down investment teams.

The recruitment market in private equity is now muted compared with the boom years of 2006/2007, but opportunities still exist. While jobs are most abundant at analyst level, investment roles for managers and directors are appearing more frequently than in 2009 or 2010. This is due to growth and also turnover as individuals have left the market or been made redundant. Blue-chip stalwarts of the industry remain the flavour of the times for candidates because many professionals remain wary about the fortunes of some funds in terms of further capital raising.

Corporate-sector roles for bankers

The corporate sector is benefiting from the slow recruitment, poor bonus numbers and lower deal-flows that are making some bankers question their commitment to the financial industry. While those dedicated to a career in banking are unlikely to let the current market affect their long-term plans, people at the margins are more susceptible to other sectors.

Corporates have always struggled to find the right candidates for jobs such as in-house M&A, but market forces are conspiring in their favour and I have witnessed far more bankers and private equity professionals move so far this year. I believe the trend will continue throughout 2012 and there seems no shortage of corporate roles in M&A, strategy and commercial analysis for these bankers.