Private equity managers are competing fiercely for talent as they attempt to build out their capacity to raise money from wealthy individuals, a new and still mostly untapped source of capital for the industry.

The largest alternative asset managers have this year dramatically increased the pace of hiring in their private wealth divisions, the units focused on attracting capital from high-net-worth investors. This competition for market share and a relatively small pool of candidates have created intense jockeying for top candidates and a wave of talent poaching from traditional financial services companies such as banks and mutual fund managers.