London remains one of the most competitive centres in global asset management. Across the city, new funds continue to launch, expand, and evolve despite a more complex regulatory landscape. For a growing asset manager in London, success often depends on balancing commercial ambition with sound governance. The challenge is ensuring both can develop in tandem.

A recurring theme from our recent webinar, The Boardroom Under the Microscope – Governance Risks in Alternative Investments, was the issue of “multi-hatting” within smaller firms. It is common to see individuals hold several Senior Management Functions, such as SMF4, SMF16, and SMF17, as part of lean management structures. In these environments, a founder or lead portfolio manager may also be responsible for compliance oversight or risk management. This approach is understandable in a growing firm, yet it raises important questions about capacity, documentation, and independence of thought.

Regulators have made it clear that growth must not come at the expense of control. They expect firms to demonstrate that decision-making is documented, data is accurate, and key risks are regularly reviewed. Financial crime risk, for example, must be assessed not only within the firm but also across outsourced providers and fund administrators. The fund remains accountable for ensuring that third parties have appropriate procedures and systems in place.

For many smaller or expanding funds, meeting these expectations can be challenging. Multi-hatting often works well in the early stages, yet as activity grows, the need for additional governance and functional support becomes more pressing. This is where specialist recruitment can make a significant difference. Engaging experienced SMF recruiters, or those with expertise as SMF 4 recruiters and SMF 16 recruiters, allows firms to access senior professionals who can strengthen governance without compromising growth.

Adding a skilled Head of Compliance or Chief Risk Officer on a fixed-term or fractional basis can help reduce pressure on senior leadership while demonstrating proactive oversight to investors and regulators. These appointments also bring valuable perspective from other asset managers, helping firms adopt best practice in oversight and reporting. In a market where regulatory expectations continue to evolve, having someone who understands both the detail and the intent behind the rules is a considerable advantage.

From a talent perspective, this is a particularly interesting period. Many compliance and operations professionals are keen to join ambitious growing firms where they can have visible impact. For the firms themselves, appointing individuals who combine commercial understanding with governance expertise can create the foundation for sustainable growth.

There is a clear pattern across successful smaller funds. They document well, they question assumptions, and they invest in people who can bridge the gap between investment and control functions. Strong governance gives founders confidence to pursue opportunity knowing the framework around them is robust. It also builds trust with investors who increasingly see good governance as a sign of quality management, not bureaucracy.

For a growing asset manager in London, the question is no longer whether governance can coexist with agility, but how to align both from the outset. Those who achieve this balance are often the ones who scale successfully and attract lasting capital.

Successful firms recognise that hiring well is not just about experience, but alignment, timing, and intent. Contact Fram if we can ever assist you with insights on the issues raised.