Will PE Start Hiring College Seniors?
PE recruiting keeps on getting earlier each and every year. https://outline.com/884yqd
It's crazy that private equity firms are recruiting investment bankers who are just weeks into their jobs.
Mr. Curtis even shared his opinion in the article and thinks that PE firms will start recruiting senior college students at some point. Thoughts?
Bump
I doubt it. I think about 1-2 months after IB analysts hit the desks will be as early as it gets. The headhunters need just a bit of time to get the entire current class at different shops across Wall Street. Recruiting Seniors you'd have to figure out who got the return offers, who didn't, what shops they are at now, and it would be pretty difficult to get at least 1-2 solid references for candidates.
Not saying it CANT happen, I just doubt it. I think IB finally just hit the tipping point going further than 12 months before Junior Summer (i.e. hiring before Sophomore & Junior year summer for the summer after Junior Year) and PE will top out at ~18-22 months before those roles start.
Can't wait to see how next year goes...
They can just ask the older analysts in the group for a list of interns who accepted to come back or accepted to join their groups no? Do you think it will actually be earlier next year, as in late September or early Oct ?
I think this is spot on for the most part. I recently spoke to a BB NY Analyst and he said upon graduating and joining the firm the very first email he received in his inbox was from a HH on behalf of a couple PE funds
Sure they could, but for banks that don't give out return offers to all their interns, it'll take them another 1-3 months to fill those positions (i.e. August - October of students' Senior Year). So would they wait for that to happen or just only recruit the kids who got full time offers?
Another point I did not bring up, but it doesn't make a lot of sense flying kids across the country for PE interviews with literally 0 experience rather than just wait for them to hit the desk in NY (or Boston, SF, etc.) for a month. Have just 10 kids in for interviews could easily cost $25k+ including flights, 1-2 night stays, meals, etc.
I really just don't see it all happening. Even this year with the early start some places purposely left 1-2 spots left in their class for off-cycle recruiting basically admitting that they realize they can't rely on an entire class being recruiting 2-3 months into those IB experiences. I also am not senior enough to make any of these decisions, so would be interesting to hear what others think.
Those are good points. Just to clarify by asking for a list of incoming analysts I pictured this being 2 or 3 months before starting training at the banks and analysts interviewing for buy-side a week or 2 before training (so incoming class well secured). Probably unreasonable, but it would be better for the banks in the sense that the analysts will be more focused on the work (not worried about studying, leaving in the middle of the day for interviews). From the PE firms point of view, candidates would have 0 deal experience but that is likely the same case right now or 2 months in. Again, unreasonable, but just a thought. Interested in others thoughts as well
They already do brah. Just gotta be at the right school shop
College seniors? We're moving up recruiting to pre-school.
deleted.
From my understanding and perspective, an unusually high amount of first year analysts sat out of recruiting, and I know of at least 2 upper MM firms that were incredibly hesitant to hire any first year analysts due to lack of analyst track record.
The only reason why recruiting happens this early is because PE firms fear if they wait, they will not get good enough applicants; they do not appear to be concerned with getting the BEST necessarily, or they would allow more time to interview more candidates before handing out offers (look at Thoma Bravo this year).
I anticipate there will get a point, potentially this year, where enough first year analysts are not prepared / comfortable recruiting this early that there will be enough who would be willing to interview for positions +2 years out their 2nd year.
What alternative will these analysts have? They can stay in banking, but, aside from the obvious downside of that, there may not be enough associate promote spots from some numbers I have seen of analysts holding out (and if you have to stay as a 3rd year analyst anyways, why not recruit +2 years out as a 2nd year?)
If I were a PE firm, I would be completely OK taking a second year analyst if they are willing to wait an extra year, especially since I have more perspective on their work as they've been on the desk more (deals, references, resume, etc.)
This allows firms to continue to push earlier, which I anticipate they will want to do as there must be a growing number of talented second year analysts that they will deem "good enough."
Any thoughts?
I agree it will probably reduce the number of 2&out analysts - moving towards a more flexible schedule as in Europe where you can exit as an associate too.
Do you think perhaps that some firms may hire 1 year out vs 2 year out? I know some 2nd-year analysts who are looking to exit ASAP.
I think PE will start hiring more analysts out of college. Warburg already takes about 1-2 analysts (usually Wharton, interned at PJT RX/EVR/Goldman). We'll probably see expanding analyst programs for candidates who can demonstrate they're top performers.
Apollo just cancelled their program this year by the way
Apollo has a PE analyst program?
Yes, I've understood they have done PE summer analysts where they help place them for FT, but never hired directly from undergrad before. On the other hand Blackstone, Ares, Warburg Pincus, General Atlantic, Silver Lake and a few others all have analyst programs.
What is the difference between the analyst program and associate program?
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