{"id":278713,"date":"2025-03-28T07:01:00","date_gmt":"2025-03-28T14:01:00","guid":{"rendered":"https:\/\/jthelander.com\/?p=278713"},"modified":"2025-03-28T07:01:00","modified_gmt":"2025-03-28T14:01:00","slug":"how-does-firm-size-impact-team-structure-and-compensation","status":"publish","type":"post","link":"https:\/\/brightturn.io\/?p=278713","title":{"rendered":"How Does Firm Size Impact Team Structure and Compensation?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">This month\u2019s Digest is all about Firm Structure &amp; Compensation. We\u2019re digging into how many people are in each part of your organization, how that changes based on total AUM, and what the compensation looks like across those roles. As AUM grows, so does team complexity &#8211; more partners, more junior partners, and expanded investment and back-office roles.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Why does this matter?<\/strong>&nbsp;It\u2019s key to understanding how firms scale their teams as they grow. Let\u2019s dive into the data.<\/p>\n\n\n\n<figure class=\"wp-block-image img-border\"><img decoding=\"async\" src=\"https:\/\/jthelander.com\/wp-content\/uploads\/2025\/09\/4a15d29f-30e3-de55-64e1-534b5728c8fb.png\" alt=\"What is the structure of your organization (how many people in each area)?\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<figure class=\"wp-block-image img-border\"><img decoding=\"async\" src=\"https:\/\/jthelander.com\/wp-content\/uploads\/2025\/09\/c7dbda89-ad83-4b35-08b4-b79ba8a9d35c.png\" alt=\"What is the structure of your organization (how many people in each area)?\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<figure class=\"wp-block-image img-border\"><img decoding=\"async\" src=\"https:\/\/jthelander.com\/wp-content\/uploads\/2025\/09\/6b3cad43-9040-9d9f-c667-dcfb97ccddc0.png\" alt=\"What is the structure of your organization (how many people in each area)?\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Chart 1,&nbsp;2, &amp; 3<\/strong>&nbsp;look&nbsp;at the structure of organizations based on how many people are in each area grouped by size of&nbsp;AUM. We see the following:<\/p>\n\n\n\n<figure class=\"wp-block-image alignleft size-full\"><a href=\"http:\/\/jthelander.com\/wp-content\/uploads\/bullet-swirl.png\"><img decoding=\"async\" src=\"http:\/\/jthelander.com\/wp-content\/uploads\/bullet-swirl.png\" alt=\"bullet\" class=\"wp-image-279309\"\/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Firms with less than $500M AUM:&nbsp;<\/strong>96% have 1\u20135 partners, with over half having just 1 or 2.<\/p>\n\n\n\n<figure class=\"wp-block-image alignleft size-full\"><a href=\"http:\/\/jthelander.com\/wp-content\/uploads\/bullet-swirl.png\"><img decoding=\"async\" src=\"http:\/\/jthelander.com\/wp-content\/uploads\/bullet-swirl.png\" alt=\"bullet\" class=\"wp-image-279309\"\/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Firms with $500M\u2013$999M AUM:&nbsp;<\/strong>87% have 1\u20135 partners, with the majority having 3\u20135.<\/p>\n\n\n\n<figure class=\"wp-block-image alignleft size-full\"><a href=\"http:\/\/jthelander.com\/wp-content\/uploads\/bullet-swirl.png\"><img decoding=\"async\" src=\"http:\/\/jthelander.com\/wp-content\/uploads\/bullet-swirl.png\" alt=\"bullet\" class=\"wp-image-279309\"\/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Firms with $1 billion or more in AUM:&nbsp;<\/strong>21% have 1\u20132 partners, 42% have 3\u20135, and 23% have 5\u201310<\/p>\n\n\n\n<figure class=\"wp-block-image img-border\"><img decoding=\"async\" src=\"https:\/\/jthelander.com\/wp-content\/uploads\/2025\/09\/11247a93-73c9-2300-acf0-65006ce67011.png\" alt=\"What is the structure if your organization (how many people in each area)? Junior Partners\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Chart 4<\/strong>&nbsp;looks at the structure of organizations based on how many people are in each area grouped by number of junior partners.&nbsp;We see the following:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Junior Partners:<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image alignleft size-full\"><a href=\"http:\/\/jthelander.com\/wp-content\/uploads\/bullet-swirl.png\"><img decoding=\"async\" src=\"http:\/\/jthelander.com\/wp-content\/uploads\/bullet-swirl.png\" alt=\"bullet\" class=\"wp-image-279309\"\/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The percentage of firms with no junior partners decreases as AUM increases.<\/p>\n\n\n\n<figure class=\"wp-block-image alignleft size-full\"><a href=\"http:\/\/jthelander.com\/wp-content\/uploads\/bullet-swirl.png\"><img decoding=\"async\" src=\"http:\/\/jthelander.com\/wp-content\/uploads\/bullet-swirl.png\" alt=\"bullet\" class=\"wp-image-279309\"\/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">At $1 billion+, more than 50% of firms have junior partners.<\/p>\n\n\n\n<figure class=\"wp-block-image alignleft size-full\"><a href=\"http:\/\/jthelander.com\/wp-content\/uploads\/bullet-swirl.png\"><img decoding=\"async\" src=\"http:\/\/jthelander.com\/wp-content\/uploads\/bullet-swirl.png\" alt=\"bullet\" class=\"wp-image-279309\"\/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The number of firms with 3\u20135 or 6\u201310 junior partners increases consistently with AUM.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Other Investment Professionals (e.g.&nbsp;Senior Associates and Associates):<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image alignleft size-full\"><a href=\"http:\/\/jthelander.com\/wp-content\/uploads\/bullet-swirl.png\"><img decoding=\"async\" src=\"http:\/\/jthelander.com\/wp-content\/uploads\/bullet-swirl.png\" alt=\"bullet\" class=\"wp-image-279309\"\/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Firms with 1\u20132 investment professionals drop from 35% (under $500M AUM) to 4% (over $1B AUM).<\/p>\n\n\n\n<figure class=\"wp-block-image alignleft size-full\"><a href=\"http:\/\/jthelander.com\/wp-content\/uploads\/bullet-swirl.png\"><img decoding=\"async\" src=\"http:\/\/jthelander.com\/wp-content\/uploads\/bullet-swirl.png\" alt=\"bullet\" class=\"wp-image-279309\"\/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">At $500\u2013999M, almost half of firms have 3\u20135 investment professionals.<\/p>\n\n\n\n<figure class=\"wp-block-image alignleft size-full\"><a href=\"http:\/\/jthelander.com\/wp-content\/uploads\/bullet-swirl.png\"><img decoding=\"async\" src=\"http:\/\/jthelander.com\/wp-content\/uploads\/bullet-swirl.png\" alt=\"bullet\" class=\"wp-image-279309\"\/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">At $1B+, the distribution spreads more evenly across 3\u20135, 6\u201310, and 10+ investment professionals.<\/p>\n\n\n\n<figure class=\"wp-block-image img-border\"><img decoding=\"async\" src=\"https:\/\/jthelander.com\/wp-content\/uploads\/2025\/09\/35d946e3-0c3b-6b87-ffd1-5e756ea5dcc4.png\" alt=\"What is the structure if your organization (how many people in each area)? Operations\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Chart 5<\/strong>&nbsp;looks at the structure of organizations based on how many people are in each area grouped by operation staff.&nbsp;We see the following:<\/p>\n\n\n\n<figure class=\"wp-block-image alignleft size-full\"><a href=\"http:\/\/jthelander.com\/wp-content\/uploads\/bullet-swirl.png\"><img decoding=\"async\" src=\"http:\/\/jthelander.com\/wp-content\/uploads\/bullet-swirl.png\" alt=\"bullet\" class=\"wp-image-279309\"\/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The percentage of firms with operations staff consistently increases with AUM, along with the number of operations team members per firm.<\/p>\n\n\n\n<figure class=\"wp-block-image img-border\"><img decoding=\"async\" src=\"https:\/\/jthelander.com\/wp-content\/uploads\/2025\/09\/e0153b98-6944-80a0-db52-fd0d638c24c2.png\" alt=\"What is the structure if your organization (how many people in each area)? Finance\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Chart 6<\/strong>&nbsp;looks at the structure of organizations based on how many people are in each area grouped by finance staff.&nbsp;We see the following:<\/p>\n\n\n\n<figure class=\"wp-block-image alignleft size-full\"><a href=\"http:\/\/jthelander.com\/wp-content\/uploads\/bullet-swirl.png\"><img decoding=\"async\" src=\"http:\/\/jthelander.com\/wp-content\/uploads\/bullet-swirl.png\" alt=\"bullet\" class=\"wp-image-279309\"\/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The percentage of firms with finance staff rises sharply at the $500\u2013999 million AUM range. While most still have 1\u20132 finance team members, firms with $1B+ AUM are more likely to have 3\u20135 or more.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>What\u2019s the bottom line?&nbsp;<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Understanding how your firm\u2019s structure compares to peers at similar AUM levels is essential for strategic planning and competitive compensation. To explore our platform and access a subset of compensation data for free, participate in the&nbsp;<a href=\"https:\/\/survey.jthelander.com\/surveys\/2\/\" target=\"_blank\" rel=\"noreferrer noopener\">Thelander-PitchBook Investment Firm Compensation Survey<\/a>. This will grant you 12 months of complimentary platform access.&nbsp;Plus, by participating, you\u2019ll secure discounted pricing for full access.&nbsp;If you\u2019re considering subscribing and wish to learn more, we invite you to schedule a call or&nbsp;<a href=\"http:\/\/calendly.com\/morganthelander\" target=\"_blank\" rel=\"noreferrer noopener\">demo<\/a>&nbsp;with us.<\/p>\n\n\n\n<p class=\"has-text-align-center btn-post wp-block-paragraph\"><a href=\"https:\/\/survey.jthelander.com\/surveys\/2\/\" target=\"_blank\" rel=\"noreferrer noopener\">Participate in the Thelander-PitchBook Investment Firm Compensation Survey For More Compensation Data<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>This month\u2019s Digest is all about Firm Structure &amp; Compensation. We\u2019re digging into how many people are in each part of your organization, how that changes based on total AUM, and what the compensation looks like across those roles. As AUM grows, so does team complexity &#8211; more partners, more junior partners, and expanded investment [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[5,3],"class_list":["post-278713","post","type-post","status-publish","format-standard","hentry","category-newsletter","tag-investment-firm","tag-newsletter"],"_links":{"self":[{"href":"https:\/\/brightturn.io\/index.php?rest_route=\/wp\/v2\/posts\/278713","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/brightturn.io\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/brightturn.io\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/brightturn.io\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/brightturn.io\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=278713"}],"version-history":[{"count":0,"href":"https:\/\/brightturn.io\/index.php?rest_route=\/wp\/v2\/posts\/278713\/revisions"}],"wp:attachment":[{"href":"https:\/\/brightturn.io\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=278713"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/brightturn.io\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=278713"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/brightturn.io\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=278713"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}