Private equity firms are continuing to compete aggressively with Wall Street banks for junior talent, despite efforts by some firms to slow the pace at which they recruit young investment bankers, according to a report by Bloomberg.
The report cites David Friedland, Citigroup’s co-head of North America investment banking, as saying that there had been little evidence so far of a meaningful slowdown in private equity hiring.
Citigroup this week announced plans to shorten its analyst programme from three years to two, allowing junior bankers to progress more quickly and receive higher compensation as the bank seeks to retain employees who might otherwise move to private equity or hedge funds.
The move follows a broader effort across Wall Street to counter the increasingly early recruitment of junior bankers by private markets firms.
Several major private equity groups had 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.
Banks have also introduced measures aimed at limiting early departures. Citigroup, Goldman Sachs and Morgan Stanley have required junior employees to disclose whether they have accepted outside offers, while JPMorgan has said analysts who accept another job within 18 months of joining could be dismissed.
