PE funds hiring early in bid for best staff

One US private equity headhunter says large funds have begun making offers to junior staff up to a year before they join. He predicts the trend is set to hit Europe soon.

"It's become very common for larger established private equity funds to offer analysts places a full year in advance," says Brian Korb, senior partner at New York-based search firm Glocap. "Private equity firms will go after investment banking analysts now and offer them places for next summer."

Korb says competition for top talent is partly down record breaking capital raising. Financial News suggests firms are trying to raise $125bn in large buyout funds over the next year, compared to $65bn in the last fundraising cycle. "Funds need more all-star people to deploy capital and there aren't necessarily enough to go around," he reflects.

Korb predicts the early hiring trend will surface in Europe sometime soon. "What's happening in the US is probably a sneak preview of what's about to happen in Europe. The same fund raising dynamic is at play across the Atlantic."

But Guy Townsend, managing director of City of London-based private equity search firm Walker Hamill, isn't convinced. "US hiring is much regimented than over here," he says. "US funds all recruit at a certain time of year and that's being brought forward. In Europe hiring's a lot more ad hoc - funds add junior staff as and when they need them."

Korb and colleagues have written a book offering advice on how to find a job in the private equity industry. Titled 'The Glocap Guide to Getting a Job In Private Equity,' the book is available at https://www.glocapsearch.com/publications.jsp.