PE HUB Wire Highlights, 9.20.19

Private equity’s on-cycle recruiting mayhem, In record market, buyers love single-asset processes

Happy Friday!

Bunch of interesting things went downt his week. Let’s start with PE recruiting. I’ll be writing a fuller story about this later today.

PE firms started recruiting for their 2021 associate classes in mid-September, the earliest kick-off for this process that anyone I talked to remembers. Firms are quickly interviewing and making offers to 21 and 22 year olds who just graduated college in the spring, and who are just starting in their two-year investment banking analyst programs.

Last year, on-cycle PE recruiting started around Halloween. Five years ago, the process generally launched after New Year’s Day. Several sources described the process as “broken,” but it seems many firms aren’t willing to back out once the process gets kicked off in fear of losing out of young talent.

The mass of interviews and offers are made over the course of a few days, meaning firms get about an hour or two to interview candidates. The hectic recruiting process can lean too heavily on candidates’ connections, which can be detrimental to the idea of promoting diversity in the industry, sources told me. It can also be a tricky decision on the part of the candidates, who have to make quick decisions on offers from firms they may know very little about.

My story will be up later today. Hit me up if you’ve been involved in this process, especially if you’re a first-year i-banking analyst who went through PE recruiting. I want to hear your story. I’m at cwitkowsky@buyoutsinsider.com.

All the talk: This week I attended the super-secret secondaries day in New York. It’s amazing how this event has evolved. With the mainstreaming of secondaries, the event has almost become like a regular conference. I may have to stop calling it “super secret”.

CONTINUE READING