Wall Street Banks and Private Equity Firms Compete for Young Talent
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Re: Wall Street Banks and Private Equity Firms Compete for Young Talent
#2Sorry to be a cynic, but:
"Promising to take a job with a particular firm can create a conflict of interest for an investment bank analyst, especially one assigned to work with private-equity firms on deals, bankers say."
Really, I don't think there will be too much hand wringing for these folks.
Re: Wall Street Banks and Private Equity Firms Compete for Young Talent
#3Sorry to be a cynic, but: "Promising to take a job with a particular firm can create a conflict of interest for an investment bank analyst, especially one assigned to work with private-equity firms on deals, bankers say." Really, I don't think there will be too much hand wringing for these folks.
It's not a matter of professional ethics, it's a matter of them making decisions in favor of their future employer to the detriment of their current one.
Re: Wall Street Banks and Private Equity Firms Compete for Young Talent
#4The whole time I read this article, I could only think of PG's "The Submarine."
http://paulgraham.com/submarine.html
This article describes a process that's being going on for decades, but manages to do so while imbuing a "drama" that only a headhunting firm could truly muster (or the guy who wrote the book selling for $299).
It's true, that the pressures have ramped up over time as private equity becomes a monster approaching the size of the banks themselves.
But at root, this article is about people in one great job, looking to go to another great job. News, indeed! Nice work to the press people who put this together.
Re: Wall Street Banks and Private Equity Firms Compete for Young Talent
#5This situation is always painted as a "prisoner's dilemma" because otherwise talking about coordinating with regards to hiring smacks of anti-competitive collusion. However, I don't think the timeline is, on the net, disadvantageous to recruits. It's hard to argue that folks on a two-year contract at a bank are somehow disadvantaged by being able to line up their next gig a year or more in advance. It's also hard to ignore the fact that the long lead time gives recruits a lot more margin for error, because they get to make a run at private-equity well before their contract runs out at a bank.
Re: Wall Street Banks and Private Equity Firms Compete for Young Talent
#6Sorry to be a cynic, but: "Promising to take a job with a particular firm can create a conflict of interest for an investment bank analyst, especially one assigned to work with private-equity firms on deals, bankers say." Really, I don't think there will be too much hand wringing for these folks.
It's not a matter of professional ethics, it's a matter of them making decisions in favor of their future employer to the detriment of their current one.
Sounds like the revolving-door career path that many politicians follow.
Re: Wall Street Banks and Private Equity Firms Compete for Young Talent
#7I think it's important to dispel a certain myth about this sector of finance.
Around and past an IQ of about 135, work boredom is a chronic risk and sometimes a disability. If you're in this set, entry-level banking ("analyst" programs) and private equity aren't where you want to go. Past 135 (much less at 140, 150, or even 160) even 8 hours per day of grunt work is impossible, much less 17.
There are plenty of 135+ in finance, but either they go for trading and quant or even IT roles, or they move to "the soft side" at a higher level: usually at least VP.
So, yes, these people are above average in talent, but they're not "the most talented" in our generation. Depending on bonuses, they're not even the best paid. Oh, and they're the ones who go on to become VCs (not you, programmers, despite your superior talent).
The 23-year-olds making half a million in private equity do exist, but they're (a) uncommon, and (b) not especially smart, just connected and unusually able (top 1%) to grind out hours. If you want to become a Master of the Universe, the optimal IQ is probably in the low-mid 120s: enough that you can build something in Excel, but not near the level that brings boredom or anti-authority risk.
Re: Wall Street Banks and Private Equity Firms Compete for Young Talent
#8Re: Wall Street Banks and Private Equity Firms Compete for Young Talent
#9I think it's important to dispel a certain myth about this sector of finance. Around and past an IQ of about 135, work boredom is a chronic risk and sometimes a disability. If you're in this set, entry-level banking ("analyst" programs) and private equity aren't where you want to go. Past 135 (much less at 140, 150, or even 160) even 8 hours per day of grunt work is impossible, much less 17. There are plenty of 135+…
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Re: Wall Street Banks and Private Equity Firms Compete for Young Talent
#10I think it's important to dispel a certain myth about this sector of finance. Around and past an IQ of about 135, work boredom is a chronic risk and sometimes a disability. If you're in this set, entry-level banking ("analyst" programs) and private equity aren't where you want to go. Past 135 (much less at 140, 150, or even 160) even 8 hours per day of grunt work is impossible, much less 17. There are plenty of 135+…
You're over-thinking the IQ part.
And I know some 20-somethings making $500K and more for PE megafunds. There are some guys from middle class backgrounds there.
The connected-but-useless ones tend to get hired in investment banking.