SG
How hot is leveraged finance recruitment? Very boiling, according to some recruiters- but this is at the junior end.
“Pretty much every team is looking for analysts and associates to work in leveraged finance right now,” says Adam Cairns at recruitment firm Arkesden Partners Limited. “Everyone seems to be hiring – it’s the mid tier and the top tier guys. They want people with leveraged finance experience or a good LBO skillset.”
These people could come from other leveraged finance teams according to Cairns. Or they
could come from private equity. Or they could be working in restructuring.
Headhunters working at the more senior end of the spectrum are a bit more circumspect about calling the return to mass leveraged finance recruitment, however.
“I don’t see that much leveraged finance hiring,” says Bruce Lock, a debt markets headhunter. “Banks will wait until there’s been a sustained market pick-up before they really start building teams, and it will be a while before they’re confident that’s taken place.”
Yesterday, Financial News cast the first stone in the battle to argue that leveraged finance hiring really is making a recovery.
It pointed out that Credit Suisse, SocGen and Lloyds Corporate Markets have all made hires, from Deutsche, HSBC and West LB. With the possible exception of West LB, this means people will need to be replaced. FN adds Credit Suisse and SocGen want to keep hiring, in moderation (2 more people at Credit Suisse).
Another leveraged finance headhunter says things are happening elsewhere too: JPMorgan has reputedly hired an MD to cover leveraged finance in emerging markets and is looking for another to work on infrastructure investments; BarCap is said to be looking for an MD too.
Mostly though, leveraged finance remains a shadow of its former self. Post-Lehman, teams were reduced by up to 70%. There is some hiring, but nothing like there was once. “Things are happening, but not as much as you might like to think,” says a headhunter, replete with realism.
“Very boiling”?? You cannot be serious.
Good article – thanks
People still get hired out of West LB? I’d sooner hire someone out of Ford Open Prison.
There is hiring at the junior end because a lot of guys/gals have moved across to the buyside in the last 6 months as established managers have raised new credit funds
Yes its the time for people in dumps such as CBA, NAB, ING, LLoyds, SMBC, BOTM , Socgen leveraged finance move to GS/MS/JPM!!!!!!!
@ Sarah: I will bet all the debt in London that the holes left by staff moving to another bank within leveraged finance will be filled internally / replaced by a far more junior headcount, who again will most likely be internal. Just because someone leaves a bank, the role doesnt automatically get sent out to recruiters / search firms… And if you believe differently, I’m afraid its just naivety.
As Mr Locke quite rightly said, the only growth in the market will be junior and organic, such as the hiring of grads into a training scheme. Confidence is not at a good level yet, nor will it be until a long term track record can be demonstrated in order to justify increased spend.
I am a headhunter and know this to be fact!
I am working in LevFin as an analyst and was contacted for 5 different other LevFin opportunities within the last month… mainly London and Frankfurt, but I would rather look into Zurich opportunities… the market is back – definitely! ; )