If you're a junior investment banker working for Goldman Sachs or Credit Suisse, December is not the most obvious time to quit and move into a new job. But if private equity giant KKR comes knocking, maybe the offer is too good to refuse.
In the past couple of months, KKR has been opening its doors to a new round of junior hires. The $153bn buyout firm has poached juniors from Goldman Sachs, Credit Suisse and hedge fund BlueMountain Capital Management. Giulio De Angelis, an analyst within Credit Suisse's leveraged finance team in London, joined KKR as an analyst earlier this month, as did Lorenzo Anolli, an analyst within Goldman Sachs' telecoms media and telecommunications (TMT) investment banking team and Kristin Hall, who worked as a distressed debt analyst at BlueMountain. It also hired Bernardo Nogueira, analyst within Goldman's natural resources team in London, in October.
Juniors don't have as much accrued variable compensation as senior bankers to worry about when switching jobs at the end of the year, but it's still a concern for some. Goldman Sachs still pays its analyst bonuses in the summer, but Credit Suisse moved across to paying its junior bankers on the winter schedule along with all the other ranks. Private equity firms have typically hired juniors during the summer to allay any fears of missing out bonus payments.
KKR also poached from a number of investment banks during the summer of 2017. Risham Saif, a leveraged finance analyst at J.P. Morgan; Marina Borissova, who worked in Commerzbank's leveraged finance team; Alexis Augier, a Goldman Sachs analyst and Nicolò Della Casa, a McKinsey associate were all among the summer arrivals at KKR.
Private equity pay in London for analysts is on a par with large investment banks. Figures from Preqin suggest average compensation of $86.60k (£65k) for private equity analysts in 2017.
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