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The first quarter of 2026 has been defined by a clear contrast in hiring activity across operations functions. January and early February saw strong momentum, with a steady flow of mandates and active engagement from both clients and candidates. However, as the quarter progressed that momentum began to slow, with hiring processes lengthening and in some cases being paused altogether.
This shift reflects a broader theme we are seeing across the fund management sector. Hiring appetite remains, but execution is increasingly tied to confidence. Where uncertainty persists, decision-making slows.
The early part of Q1 was characterised by a continuation of trends seen towards the end of 2025. Funds were actively hiring across middle and back office functions, particularly where teams were being built out or where gaps needed to be filled quickly to support growth.
By contrast, the latter part of the quarter saw a more cautious approach emerge. Global geopolitical developments and ongoing market volatility have had a direct impact on hiring flow. Processes that would previously have moved quickly are now subject to additional layers of internal review, and timelines have extended as a result.
Importantly, this is not a reflection of reduced demand but rather a recalibration. Firms are still hiring, but with greater scrutiny and a more deliberate approach.
One of the most notable shifts this quarter has been the increased prevalence of senior mandates. We have seen a clear rise in demand for Head of Operations and COO-level hires compared to previous years.
This trend aligns with a broader focus on operational control and infrastructure. As teams remain relatively lean, firms are prioritising experienced individuals who can take ownership of processes, oversee system implementation and drive efficiency across the business.
Operations is no longer viewed as a purely functional area. It is increasingly seen as a strategic lever, with senior hires expected to contribute to scalability, risk management and overall business performance.
From an asset class perspective, credit and private debt strategies have been the most active in Q1. This reflects the continued resilience and attractiveness of these strategies in the current market environment.
Operationally, these funds often require more complex infrastructure, particularly when dealing with structured products, direct lending or multi-asset credit portfolios. As a result, demand for experienced operations professionals within this space remains strong.
While other strategies have taken a more measured approach to hiring, credit-focused managers have continued to invest in their teams, particularly where they see long-term growth opportunities.
The influence of technology on operations hiring continues to accelerate. The growing adoption of investment management software platforms is changing both the structure of teams and the profile of candidates being sought.
Automation and integrated systems are reducing the need for manual processes, enabling firms to operate with leaner teams. At the same time, expectations of those teams are increasing.
We are seeing sustained demand for candidates who can bridge the gap between operations and technology. Coding capability, data literacy and an understanding of automation tools are no longer considered differentiators - they are increasingly baseline requirements. This includes growing interest in exposure to emerging areas such as large language models (LLMs) and AI-driven workflows.
As systems and workflows become more sophisticated, the nature of operations roles continues to evolve. Firms are focusing less on volume hiring and more on identifying individuals who can add tangible value.
This has led to a shift away from purely administrative profiles towards professionals who can optimise processes, interrogate data and support decision-making. In practical terms, this means fewer hires overall, but greater emphasis on quality, adaptability and technical capability.
Looking ahead, the outlook for operations hiring remains positive, albeit dependent on external conditions. Should the geopolitical landscape stabilise and market confidence return, we expect hiring volumes to pick up as funds look to regain momentum and position themselves for growth.
In the meantime, the underlying trend is clear. Operations functions are becoming more strategic, more technical and more integral to the success of fund managers.
For both clients and candidates, navigating this shift requires a clear understanding of where the market is heading and what skills will define the next generation of operations professionals.
As the market continues to evolve, having the right operations talent in place will be critical to navigating uncertainty and supporting long-term growth. If you are reviewing your team structure or planning your next hire, we would be happy to share our latest market insight and support your recruitment plans. Equally, if you are considering your next move within operations, we are always available for a confidential conversation. Talk to us.
