ON CYCLE 2023 PUSHED
Confirming on cycle getting pushed. Apparently last night / today these first year analysts blabbered nonsense and just weren't prepared - quality was subpar at best and PE shops were not happy with the current wave of candidates. Sources (2 MF, 2 UMM) say expecting process to kick back late-August / September similar to 2022 on cycle.
Also very similar to what happened last year - one MF / UMM shop engages HHs to send out coffee chats, HHs figure "it's happening" and send out info sessions, analysts get freaked out, other buyside shops start their processes to also get first looks, and eventually everything turns into a shit show.
Could also expect November / December on cycle opportunities given current economy and PE shops waiting until Q3 to determine how large of a class they can take on. With limited financing options and investment opportunities, PE shops want good and vetted associates not associates they hired based on school, group, and grades. Historically, they might've found jewels in the dirt and ran with it, but returns portcos aren't looking too good YTD and would expect that they want quality talent to get their funds back into shape.
Are you spreading rumors to thin out the competition? Several MF have filled their classes
https://www.wallstreetoasis.com/comment/3165240#comment-3165240
At the very least make your usernames different ya bloke - they haven't filled their classes, they've given out offers but very few of them.
Comment history on both accounts seems like you know a lot about Jefferies?
This looks like a Russian psyop…ima keep prepping
Idk man - I think the process has just evolved to go in two stages. The early on-cycle interviews are meant to bring in the hardos who have been grinding LBOs their entire senior year. I know for a fact a lot of great funds have already hired most of their classes from this pool.
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What is the timeline?
Second this, HHs told me their clients are not interested yet. Additionally, you can just see outreach now compared to last 2 days. Today was basically dead silent in regards to scheduling after 2:00 PM.
Prepped LBO all summer just to get cut bc of some bullshit case interviews smfh
wdym lol you didn't prep for the case interviews section?
facts
is this for bain?
lol
My boy, you can learn how to do a full LBO model in 2 days. What you mean all summer lmao
Experiencing major fomo from not getting invited to all these MF interviews. Did anyone without a work visa get invited to interviews? Thinking my visa status might have been the issue (at a top group at mid tier BB)
I’m on OPT and got invited to a couple funds. HH told me GA not too keen on internationals(didn’t interview there)
That’s great — congrats on getting those invites! Are you in EB/Top BB?
Yes, some funds more keen than others on taking internationals without H1B. Names that come to mind are Apollo, TPG, CD&R, GTCR
That’s very helpful to know. I am aware that some of them were involved in on cycle but still didn’t get any invites even though I had good calls with HHs. Would you recommend that I do anything on my end to get invited?
I doubt it’s going to be another on-cycle, but it does seem that recruiting is slowing down. I think from here on out, I would expect an offcycle like process but with easier and shorter interviews. Maybe something inbetween back to backs with exploding offers and two week long case studies. Gives firms more time to vet talent and there’s no reason is needs to all get done in a day anyway now that interviewing is officially fair game
Let me add some high level perspective that may help. With the exception of funds with top returns that are often over subscribed, fundraising has been abysmal for the past year. The biggest reason for this is large pensions / endowments that have strict percentage targets experienced the denominator effect where their equity and fixed income asset classes in 2022 were down way more than private equity (many funds were still up on the year), so they had to pull back from new allocations. Additionally, the bid / ask for many companies has been very wide the past year so deal activity has slowed. My view is many funds will under hire until they have more certainty on the economic cycle. If I had to guess, I would say recruiting this year will likely be a rolling process that could extend well into next year. My final point is many GPs are very focused on macro data right now. Macro can be hard to predict, but developing a view and the risks to that view would differentiate you in recruiting (at least with me). Listen to the Fed press conference this week and other Fed speakers (Jackson Hole in August is usually important). Track leading indicators and note data points that are outliers (i.e. why is employment still relatively strong). Hope this helps.
Well said
Excellent advice.
Did anyone just not get any megafund invites? I’m at JP/MS/GS not top tier placement group but I talked to a variety of HHs and didn’t get anything for this Friday or weekend :(
MFs usually pull from a very slim list of groups - does your group historically exit to these funds? If you're at a middle group your chances start to get very slim even from a top bank - add on if you were from a non-target or if your GPA wasn't top-class and this becomes a very difficult ask
Not to put you down just trying to say you likely did nothing wrong in these convos, the MFs were just focused on a very select group of candidates. Typically historical exits from your group are a good range to think about
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