IB Lateral Hiring is Cooked

Have any analysts been able to lateral in the past 6 months? Lateral hiring looks horrendous right now almost every new opening has 200-500+ applicants at a minimum. Hearing stuff like ex MS/Lazard guys are fighting tooth and nail for a position at Cantor lmao. Any advice on how to approach this and when do you guys think this will get better?

 

Lateral environment is very bad rn, only seen very few people make a move. I'm trying to enter from non-IB role and its almost impossible to get interview as firms get enough qualified IB analysts with decent experience already. I remember one guy at Moelis was saying here they got like 500 applications for one listing in the first week. Market is brutal rn. Maybe if deal volume picks up by end of q2, but that doesn't guarantee anything as there are many laid off people who would try entering back first.

 

I lateraled back in 2017 and the market was fairly similar to now. Each analyst application on LinkedIn would have hundreds of applicants, from varying levels as well, within the first day or so. The main difference now is that there are more people who were either recently laid off or been unemployed for some time, which makes it more difficult people to get interviews or to move forward during interview processes, but people are generally more understanding of junior layoffs now compared to years pre covid. 

Have heard of some groups hiring lateral analysts lately, and have gotten more recruiter emails on middle market groups 

 

Which recruiters are reaching out to you? Have some as well

 

Lateral market is absolutely brutal right now.

Heard directly from MDs in my network at several banks that they're waiting for rate cuts for clients to look at returning to the market. No deal flow, no need for staffing up. It is absolutely a buyer's market on the job front, with many just not hiring at all and coasting with the numbers they have.

Add in that rates are going to be held where they are for a while to cool inflation makes the market even tighter.

 

our bank (bb), posted an opening on linkedin for our group as we were legally required due to renewing someones H1B visa...

anyways, I probably got like 20 emails from people about it less than 24 hours after it was posted.  people told our group head to take it down lol

 

It's been like this since mid 2022. Lateral market got competitive out of nowhere. Interviewed at top BB's and EBs just to get cut. I am at a bank that barely  does any m&a so I don't have a track record outside of some bookrunner processes. Honestly makes regret my strategy. Wished I was more open to other banks that had some m&a presence in a sector of my interest to get some deal reps. 

 

I’m about to start FT at a firm that closes little to zero M&A transactions and is mainly doing small book running and spac deals. Is PE even an option or is lateraling to a good bank first the only realistic option?

 

There was a binge of hiring in '21 and '22 on the expectation that the high deal volumes of '21 would continue or even grow further.  Instead deal volume reverted to lower levels.  I have no idea why that surprised anyone, but somehow it surprised everyone.  And now there are a lot of bankers with excess capacity.  

If I was looking right now I'd be trying to network ahead of need (i.e. get to know some senior bankers in your coverage sector who might have some needs coming down the road), rather than hoping to be the one among 500 applicants for a job posting.

 

Commenting from London - It is extremely selective but I see market picking up banks are hiring specially JPM, GS - (MS is not in the mood). Last or final cuts (hopefully) happen this Jan in London. PE firms have been cutting too and only hiring other invesment professionals rather than bankers. There is general acceptance that market is dead - good time to connect at personal level with buyside for coffees and intitial discussions. It is the matter of luck rather than time / market. I know frnds who got laid off and made to PE in three months and some took 8 months and some still looking for it. 

 

Saw an interview with Jeff Bezos & he said one of this rules is that when anecdotes and data disagree, the data is usually wrong.  Not that it's wrong in the official sense, but that its probably the wrong data to be looking at or being applied the wrong way.  

Everything "on the ground" feels to me like the economy is struggling at least a little bit.  I know a lot of SMBs in retail & food service, 80% of them have been having a rough time the last 2-4 quarters.  In my friend group, which is a bunch of bankers, lawyers & other white collar people, not a lot of of layoffs but a handful of them and few if any unusual positives (big promotions or level-ups) to offset the layoffs.  Net negative overall for last 6-9 months.

And yet all the official data says otherwise.  My guess is, there's something screwy about the official data.  Maybe it's lagged, maybe it's too heavily influenced by non-recurring factors, I don't really know.  

 

I have a few interviews with some mm groups, but would imagine there are likely dozens of other candidates interested in possibly one seat. 

 

Be open to geographies outside of nyc if that’s where you are based. There are many lateral openings but I’ve noticed they are sometimes located in Chicago, Charlotte, SF. One of the analysts in my group got an offer to a stronger group in Chicago last week. 

 

some of my 2023 graduate friends, from target schools + buyside/eb/bb backgrounds, have gotten laid off 6-9 months in and have been scrambling. even know 2023 grads hitting the 10-month unemployment mark, mostly doing temp jobs. keep pushing everyone, the sun will shine again soon!

and of course, DO NOT compare yourself with others.

 

Canadian speaking here - it’s hell. Good luck to everyone we’re all gonna make it brahs keep pushing.

 

One of the many laid off bankers trying to break back in (ignore the title) have about 1.5 years of experience. Have had traction just difficulty closing. HBU?

 

Was recently laid off and as an international have limited days to find a new gig in IB. Getting traction outside NYC and have an offer for a Corp Dev role for a healthcare startup. Would I be able to spin that positively for IB roles once the lateral market goes back to normal ?

 

In your situation, I would take the job because you have a limited amount of time to find a new job before leaving the country. And yes, of course you’ll be able to spin this into a positive experience, focus on your deal experiences. By the way, are you a Canadian on TN?

 

Thanks guys for the advice. I’m on an F-1 and have 90 days to find something. Been much harder with a lot of firms skeptical about sponsorship as well

 
Most Helpful

Have heard many horror stories from peers. Both recent graduates that didn’t land return offers, and AN1s that got laid off or have been twiddling their thumbs for a year with 0 deal flow.

Personally, I’m a recent graduate with significant M&A experience and opportunities are few and far between. You hit the nail on the head, when you do find opps they have 500 applicants from BBs and top schools.

My best advice, not sure if you care to hear it given my lack of FT analyst experience. Is to sit tight, collect your paycheck, smell the roses and improve your life outside of banking. Network your A** off and get ahead of opportunities before they open.

In a market where supply of jobs is low and demand for those jobs is extremely high, the most sensible thing to do is make it easy for the hiring manager. If two associates (who can prob get a recruitment bonus) already know you and respect you, then why TF would they want to take a chance on some random kid. Put yourself out there.

Banking was a dog eat dog world before the market turned into what it is today, now it’s a dog eat 100 dogs world.

Go get em’ baby. Don’t give up. You’ve got this.

Cheers and good luck.

 

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