Explain on-cycle recruiting to a clueless Europoor
All the threads lately on the on-cycle recruiting MADNESS are really insane to me. It seems to be accepted that it is just the way it is, but I would love to understand how it got to this point / how it works and what the logic is.
From what I understand, you recruit for a job you will start in PE in 2 years time, before you even hit the desk and have any clue about what you are doing, at the largest PE funds? How does that make any sense? A lot changes in 2 years, as does people's performance / ability / motivation.
SURELY PE funds have the resources to just... I don't know... hire more experienced candidates after 1-3 years experience, in a proper vetting process? That's how it works everywhere outside the USA. I am a mid level PE professional in London and I cannot fathom giving an associate offer (to start in 2 years no less) to somebody who is doing their training right now at a BB. Absolute lunacy. Who is driving this? If its the headhunters, why does anybody give a shit about what they think? Surely there a an absolute ton of shit performers who are burnt out after 2 years in banking joining these funds??
No wonder PE is becoming so boring and commoditized
We move fast here, London boy. Remember that time y’all blew a 13 colony lead?
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SCORE BOARD 🔥🔥🇺🇸🇺🇸🇺🇸
Don’t forget who made you you ungrateful shits.
ATWEAST WE AHNT GETTING SHAWT IN MADFEMATICKS CLOSS!!!
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The student has become the master gg
I was about to make the same thread. These Americans are crazy, really not sure what you’re selecting for other than the ability/willingness to buy a bunch of modelling courses in your final year. Seems like you’ll just pick up whoever took the university finance society most seriously, probably not who I’d want to spend 16 hours a day working with for the next two years.
Plus people change, how can you guarantee that the bright eyed shiny-suit wearing student won’t be a burnt out husk of an analyst in two years time?
European here who moved to the US 10 years ago. The real difference: supply and demand!
There are a myriad funds in the US all competing to get the best IB analysts locked in early. Yes there are a ton of analysts, but they're looking for the ones at a top bank + group with ivy league (or similar) degree, internships. While this is a minority of the spots filled at this point, and I agree it's absurd, it's just a FOMO on the very best candidates (also driven that labor market is traditionally hotter given tech and recruiters playing some role to a lesser extent). Most funds keep many/most seats open for off-cycle. In Europe on the other hand, there are significantly fewer funds, labor market is not as strong and people don't have as many options in general.
On the supply and demand point. How else do you explain that in many regional offices at BBs (Madrid, Paris, Milan) you have to do one full year as an intern/ off-cycle analyst before you can be an Analyst 1? At MFs, Summer Analysts (very few spots) are recruited 18 months before now (i.e. only 3 months into 2nd year of college) and the collective thinking is that you may miss out on the few stellar candidates if you don't recruit this early (which I agree is absurd, but if you want to stay in the field, gotta play ball).
+1 to this. I work at a European UMM in their NYC office and the hiring norms in EU are wild. We've hired PhDs as off-cycle analyst interns (1 year). The average analyst 1 is 24-25 years old due to masters + 1/2 off-cycle internships. Not to mention the fact that they're paid 1/2-2/3 of what American employees are paid.
Just a lack of options in terms of high paying, white collar jobs = employer has all the power wrt talent/pay/position.
Do they really believe they are selecting for the best investors this way?
Wouldn’t they just get the “good” investors from MBA programs
Thing is you're valuing a potential associate based on proxies and hints that might be veeeery misleading. Yeah great, the guy went to H/W/S or wherever and has stellar grades. And so what? Oh, he secured an offer at GS/MS/JP? Oh alright great, he's definitely a good student and knows how to interview well. Don't get me wrong, it is all important and great, but you're talking of a kid who's never spent a single day in the office on a full time basis. Is he going to be a good PE associate? It's a whole different story.
I feel like it's becoming as if NBA teams start recruiting for rookies when the kids are 2/3 years before starting college. How many of the stellar and top prospects actually end up with a good career or being a good player just because they have good performance when they're 14? Only a few. Very skeptical of how this can lead to a good associate class and going forward pe seniors... Especially given how headhunters will just silos you and only look for safe horses to place going forward
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