Industry Funds Management (IFM) is on the hunt for a new chief executive after Damian Moloney tendered his resignation last week.

Moloney has headed up the wholesale funds manager for Industry Fund Services for four years and has spent 14 years with the fund.

While at IFM, Moloney was involved with the creation of the "compare the pair" campaign and encouraged investment in private equity and infrastructure.

"Damian's leadership over the past 14 years has seen IFM grow into a significant and successful global company and become one the most respected funds management companies in Australia," IFM chair Garry Weaven said.

"Importantly, Damian has achieved these milestones where many others have failed and has done so with a high degree of integrity and brings honour to the industry fund movement."

Moloney has expressed a desire to take some time out, but wouldn't rule out returning to the industry funds sector.

"Fourteen years is a long time and it was a pretty challenging role for a long time. With our offshore offices a lot of our clients got pretty big. After that period I thought that it was time to take a break and maybe do something different," Moloney said.

"But I like the not-for-profit space and it's an area where the most credibility and integrity is. If I come back that's where I would like to find a role."

However, he would not consider a position on IFM's board as he wanted a clean break, according to an article in The Age newspaper.

Moloney is expected to stay with IFM until mid-October, while the fund searches for a replacement.

It has engaged an external recruitment agency and will consider both internal and external candidates.

IFM has more than $20 billion in funds under management, employs 100 staff and has a presence in New York and London.