Goldman Sachs is launching a novel programme designed to keep its top interns from defecting to private equity firms and other competitors by offering an in-house route into buy-side careers, according to a report by Bloomberg.
According to an internal memo obtained by Bloomberg News, selected interns will receive a full-time offer in investment banking, with a planned transition to Goldman’s asset management division – which includes a private markets arm – after two years.
Dan Dees, co-head of global banking and markets, emphasised the firm’s intent to provide options for its talented cohorts.
The move targets a longstanding challenge for leading Wall Street banks: the lure of private equity. Through “on-cycle” recruitment, PE firms have long courted junior bankers early in their careers, signing them before they complete their training at investment banks, then onboarding them later.
Goldman’s initiative follows other recent efforts to curb attrition, including requiring analysts to certify quarterly that they have not accepted future job offers elsewhere. JPMorgan Chase has taken a stricter stance, warning analysts that accepting such offers would lead to termination.
Meanwhile, some private equity firms are reconsidering early hiring practices. Apollo Global Management and General Atlantic have publicly stepped back from locking in associates years ahead, citing challenges in assessing dealmaking capabilities so far in advance.
