Private equity hiring resumed its characteristic frenzy — but with stronger applicants

Private Equity Recruiting Resumes After Extended Hiatus

• Private equity hiring has recommenced following a lengthy break prompted by Wall Street banks' intervention.
• Insiders observed that the pause resulted in candidates who were more polished and experienced.
• The usual hectic pace returned, with interviews beginning early in the morning and continuing late into the evening.

After approximately six months on hold, the private equity sector’s on-cycle recruitment process surged back last week. While the intensity remained high, recruiters noted that the additional time off led to candidates who were noticeably more prepared and capable.

The hiring wave coincided with first-year bankers returning from winter break. Firms began reaching out for 2027 associate positions, roles they initially intended to fill during the summer before banks intervened. In recent years, the recruitment timeline had crept earlier, with 2024’s cycle starting as early as June—before many analysts had even begun their roles.

Major firms such as Blackstone, Apollo, KKR, and Thoma Bravo were among over a dozen firms conducting interviews and making offers, according to sources close to the process. While some declined to comment, insiders confirmed that the cycle’s signature intensity—including marathon interviews and rapid-fire offers—had returned.

In several instances, candidates spent the majority of their day inside the offices of leading buyout firms, according to people familiar with the process who requested anonymity. Most interviews took place on January 5, with some extending into the next day.

A first-year banker at a major firm described the scene as packed: “Depending on the company, you could see up to a hundred candidates in suits crowding the lobby at once. It was complete mayhem.”

He received an offer after a grueling day from 7 a.m. to 10 p.m., but was pressured to sign immediately before leaving the building.

Recruiters told Business Insider that the extra months junior bankers spent on the job made a significant impact.

Anthony Keizner, managing partner at Odyssey Search Partners, explained, “In recent years, buy-side firms have been frustrated by their inability to fill associate classes through on-cycle recruiting, largely because the process started so early and candidates lacked experience.”

He added, “Now that candidates have five months of deal experience, they’re generally more skilled, can handle financial modeling tests, and have a better grasp of deal structures. Early feedback suggests PE firms are more satisfied and are filling a larger share of their associate classes through this process.”

Why the Hiring Freeze Happened—and Why It Ended Abruptly

This recent hiring surge followed months of pressure from Wall Street banks to delay a process that, over the last five years, had shifted from autumn to early summer—often just as new analysts were starting their careers.

Last year, JPMorgan CEO Jamie Dimon decided enough was enough.

After labeling the practice “unethical,” Dimon’s top executives warned incoming analysts in June that accepting future-dated offers—or even participating in interviews—would result in termination. “You will be notified and your employment will end,” the firm’s global banking co-heads wrote in a memo.

In response, private equity firms such as Apollo, General Atlantic, and TPG quickly announced they would postpone recruiting for 2026 roles in light of Dimon’s stance.

Insiders anticipated that recruiting would pick up again in January. “Many used the December break to get ready,” said Matt Ting, founder of interview prep company Peak Frameworks. “Compared to previous years, candidates had much more time to prepare this cycle.”

It remains uncertain whether firms filled more positions this year than in the past. According to a spokesperson for Apollo, the firm typically fills less than half its associate class during on-cycle recruiting.

“Hiring decisions are among our most important, and we’ve led the way toward a more thoughtful approach,” the spokesperson said, noting, “We generally fill less than 50% of our class in on-cycle recruiting.”

The Intensity of the Process

The recruitment rush began at a breakneck pace.

On January 4, several candidates received late-night emails inviting them to early meetings the next day—often described as informal “coffee chats” with private equity recruiters. Some were instructed to bring laptops and clear their schedules, clear signs that the formal process was imminent.

Applicants cycled through multiple interviews, completed financial modeling exercises in private rooms, and waited—sometimes for hours.

“It’s not like you can schedule an 8 a.m. at Blackstone and an 11 a.m. at Apollo,” said the first-year banker. “If you perform well at the first, you’re there all day.”

A former associate at a major private equity fund recounted that a candidate he advised was kept at a firm’s office for nearly 13 hours, only to leave without an offer.

Despite last summer’s warnings and requirements for entry-level employees to sign pledges against accepting outside offers, many involved in the recent hiring said Wall Street’s efforts did little to deter participation.

Whether the success of this delayed cycle will prompt the industry to permanently adjust its timeline remains to be seen. Private equity recruiting has consistently moved earlier in recent years—so whether firms begin hiring for 2028 roles this summer may be telling.

“It’ll be interesting to see if they wait until the new year again, or revert to even earlier interviews for first-year investment banking analysts,” Keizner remarked.

Read the original article on Business Insider.