Whether it's private equity, fixed income, or private wealth management, everyone's in the market for new analysts. But what's the motivation for such a big bump up so quickly? Most firms are scrambling to amp up business to replace losses elsewhere. That means analysts are needed in new U.S. divisions, growing departments or office locations abroad.
Given the activity in private equity, the demand for analysts is expected to continue. According to Thomson Reuters, private equity investments were up 6 percent in the third quarter compared to the previous quarter. Investments were up for the fifth consecutive quarter.
As private equity placements jump, analyst spots are being added at some big banks. Societe Generale has picked up equity private placement activity in the U.S., and Wells Fargo is in the midst of hiring for its new administration service for private-equity investors and hedge funds.
The flock to more traditional investments also is opening more analyst spots in bond research. And, private wealth management needs analysts for portfolio monitoring and research. Word on the street is Goldman Sachs and JPMorgan Chase are adding analyst heads on the U.S. private wealth management side. The recent rise in Asia-Pacific private banking means the number of opportunities at big banks and investment firms there could rise, as well.
On the other hand, hedge funds haven't seen a jump in analyst posts, says Charles J. Gradante, managing principal and co-founder of the Hennessee Group, an advisory firm for direct investors in hedge funds. "Hedge funds are merely in the process of upgrading their staff," he says. They're busy picking and choosing between the senior and seasoned analysts flowing from the prop shops of Goldman Sachs, Citibank, JPMorgan and others.
Indeed, Gradante says hedge funds are laying off some of their existing analysts to take of the opportunity to get more experienced people. "There's really no net hiring increase here," he says. "It's really pretty flat."