Thoughts on offer being rescinded
hey friends - my younger sister will be joining one of the mega-funds in their fundraising / IR group for a summer internship next year. She signed her offer letter about a month ago, but is increasingly worried about the impact of a potential/impending recession& bear-market that we seem to be headed towards.
Does anyone have any thoughts on the potential for her offer for next summer to be rescinded? I know that the mega-funds started rolling out SA classes quite recently so I unfortunately don't have prior historical data to trawl through, and can't shed much MF-specific insight for her as I work at a small LMM fund.
I wouldn't be worried at all if I were her. Virtually every MF has raised (or is in the process of raising) record amounts of capital, and thus for the next several years will have ample management fees to cover operations.
Plus, a summer analyst is likely earning ~$20k for a 12-week internship (ballpark, I don't know if this is exactly right). For any MF this is meaningless, and the optics of rescinding internship offers alone is far worse than the savings that rescinding her offer might generate.
Just my take - I work at a MF. Of course, crazier things have happened, but I'd rate the odds that her offer gets rescinded as lower than the odds if she were to do IB, consulting, or tech.
SB, thanks mate for an excellent & quality response, really appreciate it!
Agreed. I’m also at a MF, the last people I can see being cut are IR, particularly at the junior level. SAs are a drop in the ocean for expenses and a pipeline of IR staff are needed. These funds need to raise capital / maintain relationships, even if deal activity drops they’ll still need to be meeting LPs regularly and senior staff will need decks made / research done etc.
Extraordinarily unlikely. Like, not going to happen.
The offers being rescinded are tech firms that have 1. been funded at obscene valuations for years and 2. never been profitable. Lot different than your traditional finance role at a blue chip firm. MFs are in an excellent spot right now, they have been through many a down cycle, and fundraising/IR is pretty much needed in any market cycle.
Also, just think about it - SA23 will work from 2024 and beyond... if job cuts come, it'll be underperforming areas that are truly a long-term strategic misfit and not ultra-cheap interns who aren't currently costing you any money. She will be completely fine. Sit back, relax, and enjoy her junior year.
Hey man, thanks a ton. This was a great response & really appreciate the insight - You're 100% correct about the tech offers as opposed to a MF so I think she can just chill
Pm me I think I know the exact program you’re describing…
it's the kkr client & partner group - I can't DM you for some reason
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