Buyside Layoffs
Hey all,
With all the layoffs in investment banking, I was wondering if buyside firms like private equity / growth equity firms ever do layoffs? What would need to happen for a firm like Blackstone or Apollo to do layoffs? Thank you!
Trending Content - Private Equity Forum
| +60 | Working on Juneteenth | 35 | 1d |
| +25 | Hardest time I have ever seen to be a GP | 3 | 2d |
| +20 | How to Get on Career Track / Stay Post ASO years | 6 | 16h |
| +19 | Weighing exit from LMM PC/PE | 4 | 16h |
| +15 | Healthcare PE | 6 | 2d |
| +14 | KKR comp for Principal | 15 | 5h |
| +12 | LMM groups within larger platforms? | 1 | 6d |
| +11 | Reality of the move from LMM to MM | 2 | 5d |
| +9 | MBA and Private Equity | 3 | 1d |
| +9 | Free LBO calculator: value bridge, sensitivities, formula-linked Excel export | 0 | 6d |
Career Resources
Banks earn revenue from fees on deals (and deal flow is heavily exposed to macroeconomic fluctuations). Asset managers earn revenue from management fees (on AUM raised in previous cycles, and new fundraising tends to be less exposed to macroeconomic fluctuations) . Performance fees may be harder to come by but management fees by definition cover junior hiring and base salaries.
At worst, the least risk is for diversified firms that have avoided the allure of an IPO (Bain, I guess?)
Very rarely. They have a much longer return cycle and can sit tight and generate revenue off of investments made in the last few years. Bankers are totally beholden to the "right now" of hot or cold deal markets.
Think you could see layoffs in a prolonged market depression (3-4+ years) as returns would compress, exits become scarce and difficult to finance new deals. But that doesn't really happen, the market moves in cycles and PE firms are aware of it
Finally, banks way overhired and yanked up pay in 2021 as they were underwater with deals, they have a lot of extra hands and higher comp on deck right now. PE firms did not overhire or raise salaries nearly as much, so they have a lot less to cut in the first place
Dolore quas dolorum dolorum sequi impedit quas. Voluptatum odit ad reprehenderit eos tenetur. Hic quisquam distinctio voluptas est distinctio iure nulla.
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...