WSJ: Blackstone to Bypass Scramble for Investment-Bank Talent in Bid to Diversify Hiring Looks like Blackstone will be fully building out their on-campus recruiting to promote from analyst to associate and will be hiring less people from IB.
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I wonder how this will impact the perceived prestige of the top banks. The allure of goldman/jpm/pjt loses significant value if they are no longer the gatekeepers to the bx/kkr's of the world
Not everyone wants to work in PE. Does the allure of Harvard lose value if its no longer the gatekeeper to goldman sachs?
If students went to Harvard to go to GS and saw it as nothing but a stepping stone then yes, if Harvard could no longer get kids to GS then the calculus on it would change. Two very different situations in reality though. Small % of Harvard is interested in finance and wants GS vs 90% of IB analysts want to get to PE
Doesn’t matter if he knows him. Can we stop harassing this kid on this site
Posted this on the other thread but here it is again:
Lol this is lip service in a number of ways. The most apparent one, which would be clear to anyone that is familiar with Blackstone's PE analyst program, is that none of their analysts stay on to be associates. They have a three year program (one of the sweatiest analyst programs on the street) that's known to be a accelerated jumping board to the best hedge fund opportunities out there; logic being, instead of spending two years as an IB analyst, then two as a PE associate, then jumping to a blue chip hedge fund, I'd rather spend 3 years as a PE analyst, and make the jump to a hedge fund after that, shaving a year off the time it takes to get there. If you want to be a PE associate at a megafund, then taking the Blackstone analyst offer is ironically dumb because a) you'll be a year behind your peers who'll be an associate their third year out of college when you're still an third year analyst, b) you don't get headhunted for a wide variety of PE associate positions like your peers because you're already at a PE shop (headhunter logic being why would you leave blackstone pe if you want to work in pe?) and c) Blackstone has a historically awful rate of internal promotion of PE analysts. What all this means is that the Blackstone PE analysts spend three years getting grinded being forced to work for less money than their peers at EBs, while wearing a tie every day, and in exchange get the best brand name in finance stamped on their resume and the best hedge fund looks of any analyst program on the street, and all of them take that opportunity and bail ship after the analyst program ends. So long story short, on-cycle recruiting isn't going anywhere for Bx because their analyst program doesn't result in pretty much any associates so they still need to go to the IB pool to find them. Note that this isn't true for most PE MF analyst programs -- Ares, Vista, and SLP all have had analyst programs for over a decade like Bx and all of them have strong rates of internal promotion to the associate level, and decent retention. Long story short, that's a clickbait title that makes it seem like Bx is just gonna hire a bunch of analysts from ASU and stop on-cycle recruiting when in reality they're still taking 3 PE analysts a year from the summa cum laude pool at Harvard and hiring a bunch of other interns/analysts out of undergrad for their other less competitive (secondaries, fund of funds) / middle/back office (portfolio operations, investor relations) business units.