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Weekly IB Recruiting Brief
Weekly IB Recruiting Brief episodes
- Can Snoop Dogg Save the Olympics? Analyst Bonus Watch 2024 - Weekly IB Recruiting Brief
Key Points:
- Economic Climate:
- Stocks gained on Friday after a volatile week
- New U.S. inflation data evaluated by investors
- Fed funds futures market anticipating rate cuts for September, November, and December
- Notable Events:
- Bill Ackman's Pershing Square closed-end fund IPO postponed
- Deal size reduced to $2.5-$4 billion range
- Pricing expected next week
- IB Recruiting Update:
- 25% of analysts received bonus figures (Japanese and Canadian banks, select independent advisors)
- 43% of bonus announcements expected in August (including Barclays, Goldman Sachs, Citi, Morgan Stanley)
- Initial reports: analyst bonuses flat to down 10-15% compared to last year
- Wider compensation bands, with top performers receiving higher payouts
- Advice: maintain professional discretion regarding bonus discussions
- Future Outlook:
- Another round of layoffs anticipated in October
- Gradual increase in mid-level hiring (Associate 2 to VP2) expected after Labor Day
- Hiring trend dependent on continued positive M&A activity
3 min - Green Shoots Again? Why this Time is Real
Green Shoots Again? Why this Time is Real
- IB Sector Performance:
- Q2 2024 was the strongest quarter since early 2022
- Top five bulge bracket firms generated $8.2 billion in investment banking fees
- 40% increase year-over-year, potentially signaling an inflection point
- Industry Perspective:
- Characterized as "early innings" of a potential sustained recovery
- Caution due to previous false starts
- Ted Peck (CEO of MS) insights: Delayed recovery materializing, tempering inflation, normalizing rates
- Current Recruitment Landscape:
- Outlook: Cautiously optimistic
- Firms focusing on integrating recent hires rather than aggressive new recruitment
- PRP filled several roles in past 2 weeks, some urgent mandates remain
- Anticipation of gradual increase in mid-level hiring (Associate 2 to VP2) after Labor Day
- Hiring increase contingent on continued positive M&A trends
- PRP Strategy:
- Maintaining active dialogues with clients and high-caliber candidates
- Positioned to act swiftly as market conditions evolve
- Advice: Firms and candidates should stay prepared to move quickly when opportunities arise
- Future Outlook:
- Gradual increase in hiring expected
- Those ready to act will have a significant advantage as market accelerates
3 min - IB is 'Sort of' Back, Recruiting is Slow (Unless You're an MD)
IB is 'Sort of' Back, Recruiting is Slow (Unless You're an MD) – Weekly IB Recruiting Minute
- Economic climate impact on IB recruiting
- Q1 2024 revenue increases: JPMorgan Chase (46%), Citigroup (60%), Wells Fargo (38%)
- Growth across advisory fees, equity underwriting, and debt underwriting
- Recruitment scene remains subdued despite revenue surge
- Market uncertainty persists
- Banks integrating recent hires
- Seasonal factors (summer vacations)
- Compensation issues (reluctance to offer full-year bonuses for partial-year work)
- Economic factors affecting recruitment:
- EY Parthenon forecasts 20% increase in US corporate M&A activity for 2024
- Potential headwinds: high interest rates, debt refinancing focus, IPO market concerns, geopolitical instability, reduced private equity activity
- Shifting recruitment trends:
- More selective and strategic hiring
- Focus on specialized expertise (e.g., software M&A, healthcare services, life sciences, restructuring)
- Emphasis on adaptability and diverse skill sets
- Advice for candidates:
- Develop diverse skills
- Stay attuned to evolving market needs
- Focus on adaptability
5 min
About Weekly IB Recruiting Brief
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Deep thoughts on the investment banking recruiting market.