Getting ahead in an undulating and unforgiving hiring market (Aug 2024)

Pooling feedback across East Partnership’s coverage areas, hiring activity in 2024, thus far, has been mixed. Whilst our Funds Management business has been consistently busy, our other, more transactionally focused verticals – Investment Banking, Private Capital, Infrastructure/Real Assets, and Corporate Development – have seen demand ebb and flow. Similar to my recent experience of Heartbreak Hill when running the City2Surf, we have regularly felt on the precipice of a surge in hiring, only for the crest of another hill to emerge around the corner.

When talking to clients in Private Capital, the message has been similar, but over the last few weeks we’ve been buoyed by noises of more tangible deal activity. Whatever the reasoning, be it more realistic pricing, more urgency to sell, or the accumulation of pressure to deploy, we’ve noticed clients are busier. For firms that were hiring during H1 (without overly prescriptive requirements) it has meant a rare thing, a pro-active candidate base. Pro-activity does not always guarantee engagement, however, and recruiting in a macro environment with rates uncertainty and inflationary pressures can lead to a degree of risk aversion at the pointy end of processes. Candidate priorities can, understandably, change in such a market - base salaries become more important, there is a tilt towards scaled, more mature firms, and sometimes, when it comes to managers, the devil you know is better than the devil you don’t. So, whilst candidate volume has been solid, hiring processes, as ever, have had their challenges.

From a candidate perspective, it has meant processes have been as competitive as ever. Firms have often been able to target specific backgrounds and experience levels, and in most cases, processes have been aimed at filling one rather than two or three spots. For junior candidates in the prime experience bracket for a move to private capital of 2-4 years’ experience, it has meant patiently waiting and wishing for activity – something those at mid-senior levels are well versed at in a small market.

So, how can junior candidates use this time to their benefit?

Candidates measurably improve their interview performance the more processes they compete in. As with most things in life, practice makes perfect. But in a market without many live processes, dry runs can’t be relied on.

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Know your profile inside out

• Be prepared to discuss any aspect of your CV, even those topics you thought you'd left long behind. From the key aspects of your university dissertation to the salient themes of the book you never quite finished but added anyway - everything in black and white is fair game. Most importantly, be able to discuss the experience that has got you the interview in the first place - your role on deals / projects, the businesses you've worked with, the technical skills and knowledge you've acquired.

Mock case study. Rinse and repeat

• It is very rare that anyone passes their first case study. The core aspects of most PE/PC research case studies are the same, and whilst the business, cap structure, situation changes, the key deliverables are often very similar. Time overspend on modelling is the most common downfall, especially for those who haven't done many - become acutely aware of what is possible during that period (and what isn't!). If you are an investment banker, practice consulting style case studies, which can be a bit of a shock to the system at the first time of asking.

Nail the motivation question

• Given you have the tie, use it to tailor your approach for each firm you interview with, based on their strategy, approach, and their previous hires. Research the backgrounds of everyone you meet and have considered questions about their career pathway and experiences. Look through the firm's portfolio companies, implementation of growth strategies, bolt-ons etc.

Professional qualifications / higher education

• This is a regular question from candidates when the market is slow. Would a CFA, MFin, MBA help me break through, give me a cutting edge? The honest answer is that (for Private Capital) we are rarely, if ever, asked for candidates with specific professional qualifications in addition to their undergraduate degree. This does not mean the CFA won't bring accretive value to a profile, or an MBA won't have a transformative influence in your career trajectory. However, most Private Equity or Credit funds are already targeting relatively specific profiles (IB or Consulting juniors), and if you already have that profile (often those who are asking us do) then you are better placed focusing on interview preparation/technique. For those in non-target firms with relevant, transferable experience (for example, big 4 transaction services or valuations), an MBA at a leading school can genuinely change your career outlook, but there is clearly a significant financial outlay, as well as graduating into unknown market conditions.

If you're able to, build an investment portfolio, even it modest

• A small yet powerful way of demonstrating your interest in investing. If you can't, start a mock portfolio, or research specific stocks to a sufficient depth which enables you to discuss them at interview.

Stay current and informed - preparation is an ongoing process

• Keep up to date with market news, major Private Capital themes. Talk to friends who have already made the move, their recruiting experiences, how they got up the curve on joining.

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Finally, where possible, use a recruiter you trust. We're here to tell your story, what differentiates you, and overall, why we're keen to represent you. We'll also be able to give you key insights into each stage of the process, the people you'll meet, and, where possible, constructive feedback.