How will market crash affect on-cycle?
Especially curious to hear from people involved in current process, or who were involved during 2020.
Trending Content - Private Equity Forum
Career Resources
WSO Free Modeling Series - Now Open Through
June 30, 2026
9 Free Financial Modeling Lessons
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.
+Bonus: Get 27 financial modeling templates in swipe file
+Bonus: Get 27 financial modeling templates in swipe file
High Finance Applications
Guaranteed
Get at least one offer GUARANTEED
- 1:1 support
- 92% success rate
- 2,000+ mentor network
- Unlimited Live bootcamps
- AI for resume + LinkedIn
- Networking automation tools
- HireVue simulation tool
- Full course library
- Private Slack community
- 20hrs of mocks
- + much more...
Based on the most helpful WSO content, market crashes can significantly impact the on-cycle recruiting process in several ways:
Increased Stress and Uncertainty: During market downturns, the stress and unpredictability of on-cycle recruiting can amplify. As noted in discussions about the 2023 on-cycle process, candidates already face immense pressure, and a market crash could exacerbate this by creating additional economic and job market uncertainties.
Lower Candidate Quality and Preparation: In challenging market conditions, firms may observe a decline in the quality of candidates. For instance, in 2023, model test pass rates were at all-time lows, and candidates were reportedly weaker compared to prior years. A market crash could further strain candidates' preparation and performance.
Reduced Hiring and Class Sizes: Funds may reduce hiring or delay decisions due to economic instability. In 2023, funds were already filling a lower percentage of their class with on-cycle candidates, and a market crash could lead to even more conservative hiring practices.
Shift in Candidate Mindset: A market crash might prompt candidates to reevaluate their career choices. As highlighted in recent threads, some analysts are questioning the value of the process, with fewer participants going "all in" on on-cycle recruiting.
Lessons from 2020: During the COVID-19 market crash, the global economy faced significant disruptions, which impacted recruiting timelines and processes. Candidates and firms had to adapt to virtual interviews and shifting priorities, which could serve as a reference for how a future crash might unfold.
If you're currently involved in the process, staying prepared, flexible, and informed about macroeconomic trends will be crucial.
Sources: 2023 On-cycle is a disaster, A Decade Into IB: Teetering on the Edge of Cataclysm?, How long will the Covid-19 affect the markets? How should everyday investors react?, Coronavirus scare and the impacts to the global economy,
Negatively. Hope that helps!
Thanks! Appreciate the thoughtful response.
Guys - PE is done. Think about how many levered companies are out there that sources cheap stuff from China to sell to the US. Those companies just had a 100% increase in COGS.
Laboriosam est modi et nulla placeat et. Tempora officiis doloremque hic repellat perspiciatis quia amet. Ratione quasi neque recusandae quisquam. Ad ut sapiente sunt eaque repellendus.
Unde quo sed omnis necessitatibus perspiciatis. Quam assumenda ipsum et quia magnam praesentium. Qui et quam provident. Aut est dolorum culpa minus minima.
Dolore qui deserunt vel error soluta asperiores iusto. Est eum aut officiis illum ipsum aut odio.
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...