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Morning Coffee: Frenzied hiring of 22 year-olds for £200k jobs. Goldman MD cautions against quitting banking young

rivate equity recruitment

Private equity funds are swarming around top candidates

You do not know what being pursued is until you’ve been a top ranked 22 year-old analyst in a leading investment bank and you’re on private equity (PE) funds’ recruiting radar.

So says the New York Times’ DealBook. PE funds have been long renowned for their aggressive tactics, but DealBook says things are reaching a whole new level.

Following the realization last week that one US fund has already begun interviewing top analysts for a 2016 start, other funds have reportedly been panicked into contacting target hires early too. ‘They could not afford to wait,” says DealBook. ‘Recruiters contacted young bankers Friday night, instructing them to show up for interviews on Saturday and Sunday.’

Young bankers have plenty of incentive to take PE funds’ calls. DealBook says the PE associate roles they go into pay $300k (£200k), twice the amount they can expect to earn in investment banking.

“It’s as if these were star athletes,” said Adam Zoia, chief executive of the recruiting firm Glocap Search, who helps private equity firms hire young workers. “The irony is they are professionals six, seven months out of undergrad.”

Separately, Glasshammer – the website focused on helping women in finance, law and business, has an interesting interview with Stephanie Hui, a partner in the merchant banking division at Goldman Sachs. Hui cautions against escaping investment banking too soon. “As you gain seniority, less time will be spent on the more mundane tasks of doing spreadsheets and building financial models, and more time will be spent on understanding people, reading industry landscapes, and making actual investment judgment,” she says. “Do not leave before the fun starts.”

Meanwhile:

Fourth quarter profits at private equity fund Carlyle declined 80%. (WSJ)

The FCA is thinking of making it possible to clawback salaries as well as bonuses. (Financial Times) 

Credit Suisse is moving a London and Paris-based trading team out of its investment bank and into its asset management arm. (Reuters)

If you’re an equity researcher you should really want to work for Autonomous. While banks will distribute their research to 1,500 clients, Autonomous distributes it to no more than 100. This makes its research far more valued. (Financial News) 

Man Group’s GLG macro fund lost 9% in January and is being shut down. (Reuters) 

Working in Basel is great. “I can go home and be running alongside the Rhine and watching the sun set in 10 minutes. And, of course, you often encounter your colleagues out and about. The senior managers here go out of their way to be accessible, so if you see them in the supermarket you can be sure that they’ll have a chat with you.” (Bank for International Settlements) 

Attractive men tend to be less egalitarian and less generous. That isn’t the case with attractive women. (Psypost) 

Richard Branson prefers fist-bumps to handshakes because he kept getting his hand crushed. (The Sun) 

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