PE firms continuing to hire young bankers

Private equity firms are continuing to compete aggressively with Wall Street banks for junior investment banking talent, according to a report by Bloomberg, despite earlier efforts by some firms to slow the pace of their recruitment. Citigroup's co-head of North America investment banking, David Friedland, told Bloomberg that there had been little evidence so far of a meaningful slowdown in private equity hiring.

The competition has prompted a response from the banks. Citigroup this week announced plans to shorten its analyst programme from three years to two. The change is designed to let junior bankers progress more quickly and receive higher compensation, as the bank seeks to retain employees who might otherwise leave for private equity or hedge funds. The move is part of a broader effort across Wall Street to counter the increasingly early recruitment of junior bankers by private markets firms.

Several major private equity groups indicated last year that they would push back their hiring timelines. Apollo Global Management, for example, told some prospective investment banking candidates that it would not interview them or make offers for positions beginning in 2027. Those commitments, however, have not translated into a broad retreat from the market for junior talent.

Banks have also introduced measures to limit early departures. Citigroup, Goldman Sachs and Morgan Stanley have required junior employees to disclose whether they have accepted outside offers. JPMorgan has said analysts who accept another job within 18 months of joining could be dismissed.