War for tech talent: 60% of private capital firms say attraction and retention is their biggest challenge

A global study of more than 150 heads of private capital firms, hedge funds, and private wealth managers showed that finding staff for automation and cyber security roles were their biggest concern.

Other major problem areas including the widening skills gap due to changing demands (44%) and Diversity, Equity, Inclusion and Belonging (DEIB) related challenges (41%).

Over 40% of respondents believe their existing training programmes will be insufficient and become a key challenge over the next five years unless they are upgraded.

The research, conducted by Intertrust Group, reveals that many fund managers are no longer insisting on specialist experience and are instead looking for people with a more generalised background who they can up-skill or re-skill across different function areas and rotate them as necessary.
 
Private markets have grown over the past decade. Despite this year’s economic turmoil, demand from private capital continues to show resilience. According to Bloomberg UK, private capital markets are set to double by 2027.

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In the current climate, staff turnover is a huge challenge for organisations for various reasons including the great resignation and new priorities favoured by millennial and Gen-Zs like environmental, social and governance (ESG) performance.
 
Based on interviews with 150 senior decision-makers in private capital firms with between £10.1 billion ($12.5 bn) and £23.9 billion ($29.5 bn) in assets under management, the talent gap is particularly acute in automation and cyber security, with over half (56% and 51% respectively) claiming they will need to develop workaround solutions to mitigate the skills shortfall. 

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Chitra Baskar, President of Fund Solutions at Intertrust Group, said: “Most private capital firms are struggling to recruit into highly competitive technology-related roles and are increasingly seeking support from their strategic outsourcing partners to combat this. 

"Sophisticated service providers invest a substantial amount in ongoing training and competency building within their teams and are well placed to plug in-house talent shortages.
 
“Our Halo Framework highlights the importance of ‘empowering your people’ as one of its core areas of focus – encouraging firms to recruit from all backgrounds, develop skills and knowledge with a tailored talent management strategy, rotate jobs so staff experience different value streams, and build a knowledge exchange system.”