Two totally divergent opinions on the state of junior recruitment in the private equity market
Candover has thrown in the towel. It revealed yesterday that it intends to wind up its investments and pursue dissolution.
Candover already employs far fewer people than at its peak. Back in the good old days we're informed there were 102 people working there; now there's 39. "No decisions have been taken yet on whether there will be any further slimming down of the team," reassures a spokeswoman. "We will make sure the right resources, human and financial, are in place to pursue the value maximisation strategy."
If Candover does cast those 39 adrift, its junior staff may find the private equity job market unwelcoming. This is the time of year when investment banking analysts, having recently received their bonuses, traditionally get poached by PE funds. According to one recruiter, it's not really happening.
The pessimistic one
""There's not a lot of volume hiring in private equity at the moment," says Logan Naidu at The Cornell Partnership. "Any hiring that is taking place is very selective and private equity funds are now making less effort to match banks' base pay and bonuses. The sell now is that you are doing a more interesting job, not a better paid one."
Naidu adds that he's not seeking to actively source people from Candover because there aren't the jobs for them.
The optimistic one
However, Abid Hussein, who runs the small private equity specialised recruitment boutique AIH Advisors, claims to be awash with work. "There's really quite a lot of hiring activity out there right now, both at mid and large cap teams," he claims.
Recruitment is rumoured everywhere from KKR to Bain and Hellman and Friedman.
Hussein is equally optimistic about the potential for Candover casualties: "Candover's a great name and, especially at the junior end, people won't be penalised. They joined in good faith and weren't the ones making the decisions that have led to the funds being wound down."
Hussein also says that junior bankers don't really want to work in private equity any more - thereby narrowing the field of competition for anyone that does.
