London - Is the job market completely flat on its back?
It is clear why the equity market is dead at the moment: no one is buying/selling. But we keep hearing that private credit firms are raising cash and will be active picking up the slack of traditional/institutional lenders but it doesn't seem to have translated in massive job creation so far...
I agree it's completely dead.
One guy is currently having a final round in London at Welltower on this forum
Yes the job market is dire and London looks like it will lag the US in recovery due to potentially longer term and stickier inflation. My partners are all looking to invest in the US (if based there) and Asia (if Global).
Speaking to some of my network the current mood is that there is a lot of IB talent that is being let go/about to go which the CRE firms are looking to snap up rather than looking for more traditional CRE professionals.
Anyone else heard anything similar or something completely different? Seems like a pretty hectic market where no one knows what is up, down, left or right.
Yes, it aligns with what I've been hearing. I've also heard that some firms have expressed regret after recruiting IB talent due to compensation misalignments + culture clash. Additionally, candidates in CRE are exploring opportunities in Australia, Dubai, and other parts of Asia.
Finally the impact is even more brutal for graduates which are struggling to get their foot in the door.
Scary to hear that this is naturally the international sentiment rn. A lot of IB talent is moving into the CRE Sector even in Canada and I have a feeling it has to do with the WLB but it's crazy to hear that they're willing to make that big of a pay cut.
Canadian CRE comp is just trash even at the "bigger" shops. There are only a few places that pay well
Would not call it dead dead dead...
Can confirm Welltower comment
Personally far from having the sexiest CV and couple of opportunities atm (ie: interview booked post HH approach)
I think a strong CV with a couple of years at a decent shop known by recruiters (no need for US IBs + Blackstone, Starwood etc...) can open many doors at the moment. Could tell 10/15 groups looking for Ann/Associates (2/4 years experienced) atm, REPE, Dev Shop...
Recruiter over the phone today for a very nice shop: "Based on conversations we're having at the moment we expect incoming busy weeks from a recruitment perspective" (2/4 years An/Ass)
Good luck all, can't wait to secure something! Soon the end of my savings with this London Rent & lifestyle not helping!
How did welltower go? Did you get it?
I saw the Canada welltower who say they don't acquire, probably same for ldn probably more so
Been hearing that stuff for the last year ("oh yes the market is shit but it's picking up now").
Honestly with this environment I can't expect a structural recovery in hirings at least for the next 12 months.
That’s good to hear but somewhat surprising! Are these investment positions or more on the AM side? From what I’ve seen things are completely dead for the investment side but perhaps I’m speaking to the wrong recruiter!
I would also add that the London Market is small, so opportunities are always going to be thin. There's just simply not enough to go around, even in good times.
There are "plenty" of associates and analysts that have started within the past 6 months, or so, on LinkedIn at the big shops
If you call the London market small, good luck. Virtually nothing bigger than NYC and London for real estate and finance in general.
If you can't understand context, good luck. There are probably more banking summer analyst seats than there are acquisition analyst (assuming this is what the OP means) positions open every year (not that I've fact checked myself). Teams run lean, and people stay a relatively long time. The job opportunities are significantly smaller compared to other industries.
I don’t think it’s “dead” for people with 1-3 years of experience. I’ve heard that director seats are not opening up pretty much anywhere though, which makes sense. Private Credit (where I work) has not seen the huge influx in deal flow it thought it would mostly for two reasons:
1) Existing Lenders are extending and pretending (if they don’t, Sponsors would need to sell (not a good time in this market) or find a private credit firm to replace the in-place debt (tough when the LTV shift on that same debt stack has increase by 10-30%) so would involve Sponsors adding equity to repay the loan (also not happening)
2) New deals are scarce since since bid / ask has been jacked up (albeit getting tighter and tighter) and the only way to make a deal pencil is with debt priced with a low margin which makes 0 sense to 80% of debt funds (this changes if you have insurance money where spreads are significantly tighter)
Considering this, it would make sense that only analyst/associates jobs are getting created / freeing up up as teams realize some of the heavy lifting / tedious work-streams need a bit of help. However, no one needs an originator (which is mostly the day-to-day for VPs and up) in this market as that’s not what’s going to move the needle returns-wise.
U suggesting analyst headcount across shops will be looking good?
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