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PE HUB Wire Highlights, 12.14.18

Texas Teachers’ marks another $1 bln for young managers, Wilbur Ross in PE secondary sale

Happy Friday!

Starting to get the jitters about the end of the year and the impending holiday break. Lots of last minute things to finish up before the markets take a break and everyone disappears.

Recruiting: Tech titans are looking for talent outside the meccas of Silicon Valley and Seattle, but they aren’t really sharing the wealth. Instead, they’re building satellite campuses in already-wealthy places like New York City, Austin, Texas and Boston, New York Times reported.

Apple said this week it would build a $1 billion campus in Austin, expanding to 11,000 employees there. This is after Amazon selected Long Island City and Arlington, Virginia, for its headquarters 2.0. And Google is looking for more space in NYC to more than double its workforce in the city, NYT reported.

“They’re expanding out,” Mark Zandi, chief economist at Moody’s Analytics, told the newspaper. “Tech talent is in very short supply. So if these tech companies want to grow and flourish, they need to find talent in other parts of the country.”

The companies do look for specific talent in second-tier type cities that have engineering schools like Pittsburgh, where Google and Uber opened offices. Pittsburgh attracts artificial intelligence talent because of Carnegie Mellon University’s computer science program.

Searching: The idea of recruiting outside of the tech-focused cities was one of the themes addressed in a recent interview I did with Paul Barber, co-managing general partner with JMI Equity. JMI, focused on software investments, just closed its ninth fund on $1.2 billion.

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