I'll start -- still fairly dead, I'm seeing a couple teams start to hire but still not materially better than 2022/2023. I think more firms are waiting to see rate cuts / inflation data looking good and get more conviction in a continued market recovery. My fund is certainly not near where our AUM was 2021/2022, lot of redemptions with clients pulling their money out or trimming the big rally.
What is your experience? Any thoughts on how it will look like in 2024 relative to 2023?
| +37 | Q&A | Research Associate, Long-Only | (0 years in DCM/IB/consulting) | 14 | 3d |
| +17 | Working for Endowment? | 8 | 3w |
| +14 | Early career insurance AM - should I just thug it out? | 3 | 2w |
| +8 | Bridgepoint Acq Kayne Anderson RE | 2 | 3w |
| +7 | CPP Early Investor Program (Summer 2027) Check | 6 | 1d |
| +6 | MBB to Banking Career | 1 | 3w |
| +6 | Goldman Sachs Operations? | 1 | 3w |
| +3 | Headhunters - Europe | 1 | 14h |
| +3 | ARES - culture, WLB | 1 | 1d |
| +1 | Dodge & Cox perception, reputation in industry the industry? | 4 | 2d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
My firm, one of the larger asset managers, completed a bunch of hiring in 2023. Looks like 2024 is going to be a lot slower. Fund AUM is stable from peak but largely due to performance. Redemptions are a headwind.
I am surprised you guys had a bunch of hiring in 2023 given the uncertainty. Is there a reason for this? Building out new teams, lot of folks fired / leaving, etc?
Bumping
I'm in the FI team of one of the larger AMs. We're pretty much still in a hiring freeze. BUT recruiters are reaching out pretty regularly for investment grade analyst and some PM roles (particularly macro), most places are growing their FI teams. It feels like we're seeing client funds moving away from money markets into IG funds. I expect we'll move further down the risk spectrum in the next 6-12 months.
Large LO. My team's performance currently is top quartile over every trailing window but despite that getting new assets still seems next to impossible. Over a ~decade span our AUM is down 50% however it seems to have troughed over the last couple years and maybe it improves from here. AUM this year was up slightly due to good performance and a light trickle of new money.
Needless to say we aren't currently in the market to add IPs. Firm as a whole is maybe looking to add 1-2 IPs from what I have heard. My team is still fairly large in terms of assets but runs lean and would probably have to grow by 25-50% before we'd want to add another Analyst. Some strategies appear to be having a better time with flows than us (my strategy is in a very competitive segment of the market vs. others that get easier comps + it's easier to justify going active in things like credit and EM which I am not involved with). Not pretty overall.
Bumping this here Still anecdotally feels weak in AM for open seats. Private markets also looks like its starting to see a slowdown.
How much of the downsizing is cyclical vs structural for the industry given shift towards ETFs?
Tempore maxime voluptate ut est numquam cupiditate occaecati corrupti. Expedita et id repellat sint sunt vel.
Error natus libero atque consequatur. Voluptatibus repellendus iste deserunt enim quia laborum. Quaerat asperiores sunt eos vero animi commodi. Et vel unde perferendis iure illum. Alias aut illo eos in voluptatibus. Eum ullam omnis occaecati aperiam.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...