In a surprise move that sent shockwaves through the small Wall Street community on Monday, a series of top private equity firms began recruiting for lucrative positions that won’t start for another two years.
The intense rite of passage known as “cycle recruiting” left some young investment bankers scrambling to attend a flurry of hastily arranged interviews. It marked the earliest date the buyer’s recruitment began. The cycle had changed progressively earlier over the last few years.
More than half a dozen industry sources confirmed to Business Insider that the recruitment of associates began Monday evening.
Two of the biggest firms interviewing candidates on Monday were Apollo Global Management and KKR, some of the people confirmed to BI, requesting anonymity citing the sensitivity of the information. (Their identities are known to BI.) Four sources said Clayton, Dubilier & Rice also participated in the interviews.
Spokesmen for some of the firms involved in the recruitment either declined to comment or did not immediately respond to BI requests for comment sent outside normal business hours on Monday evening.
Most first-year investment banking analysts won’t officially start their banking roles until July. The early recruiting timeline has left most candidates with no real-deal experience to speak of, let alone workplace experience to show for, beyond their past summer internships.
It was unclear whether the firms had already made offers to the successful candidates.
Recruits who were not yet settled in new apartments
Historically, a handful of PE firms jumpstart their recruiting cycle each year when they begin interviewing new or current investment bankers for hire two years later.
Many others then follow suit, starting an industry-wide scramble to claim entry-level talent. Coveted jobs come with the lure of prestige and attractive compensation packages. Last year, some candidates scored offers that exceeded $300,000 in comprehensive package (including base salary and bonus), BI previously reported.
The purchasing associate interview process is a stressful sprint. Two years ago, for example, BI reported that candidates were making excuses to leave their investment banking desks, with some remaining in interviews until 2am.
This year, two sources said the sudden start meant some new bankers were out of New York City, catching them by surprise. Some soon-to-be bankers, they added, have yet to move into their New York City apartments.
A person with intimate knowledge of the recruitment process said other firms that had not yet conducted their interviews would likely balk at starting recruitment so early.
A timeline for when the remaining firms could finally move forward was unclear. The start of last year’s cycle — which was nearly a month later, in late July — similarly moved the needle earlier than ever, pushing it up from the previous Labor Day or early autumn. Most first-year investment banking analysts had barely started their careers. Some skipped training sessions and work abroad events to prepare for PE interviews. One young banker was so disillusioned by the chaos that he abandoned the prospect of a career in PE altogether.
“Honestly, it made me think that private equity in particular is such an abusive industry,” this person said last year. “It’s not worth it. It’s not worth my life.”
Do you work in investment banking or private equity? Contact these journalists to share your experience during this year’s private equity fundraising cycle. Contact these journalists to share your experience. Emmalyse Brownstein can be reached by email at ebrownstein@businessinsider.com, or the Coded Signal app at (305) 857-5516. Reed Alexander can be reached by email at ralexander@businessinsider.comor Coded App SMS/Signal to (561) 247-5758.