Private equity firms are known for making the on-cycle recruitment process tough for candidates. This isn’t surprising, given that PE roles can pay in excess of $300,000. However, the challenges begin even before the first interview.
Candidates are kept in the dark about when the on-cycle process will kick off. Typically, one of the largest firms will initiate interviews with little notice, prompting others to follow suit. Last year, Apollo and KKR led the charge, launching their recruitment process on June 24 — the earliest start date on record.
If you’re planning to apply for a role in private equity this year, you may not have fine-tuned your resume or practiced financial modeling yet. But you’ve likely wondered when the on-cycle process will start. Here are some insights to help you prepare.
What can we learn from previous cycles?
We’re all familiar with the investment disclaimer, “Past performance is no guarantee of future results.” However, when predicting the start of the on-cycle process, looking at previous years can be helpful.
These are the start dates for the last three recruitment cycles:
- 2022: August 29
- 2023: July 21
- 2024: June 24
The on-cycle process has begun earlier each year. Over the past three years, it has moved up by more than two months, with each cycle kicking off approximately a month earlier than the last.
Looking further back, we see the same trend. Peak Frameworks observed that from 2018 to 2021, the on-cycle timeline shifted forward by one or two months each year. Commenting on their research at the time, they said, “It seems like there’s no further it can move forward.” Little did they know.
Can it start any earlier than last year?
Business Insider’s 2023 article explored the drawbacks of private equity’s increasingly early on-cycle process. Junior bankers shared how they were turned off by pressure-cooker tactics, which left little time for preparation and considered decision-making.
How did private equity firms respond? By bringing the on-cycle process forward in 2024.
PE firms seem undeterred by candidate concerns. Last year, Business Insider reported that the on-cycle process started so early that many junior analysts hadn’t even begun their training. This debunked the belief that the process couldn’t move earlier because candidates required investment banking experience.
“Associate hiring in private equity is undergoing a profound transformation.”
Adam Reichow, Founder and CEO of Wayves Talent and former Vice President of Recruiting at Goldman Sachs
Adam Reichow, Founder and CEO of Wayves Talent and former Vice President of Recruiting at Goldman Sachs, notes, “Associate hiring in private equity is undergoing a profound transformation.” While he questions its effectiveness, he says that firms are currently focused on securing top talent early.
Users on Wall Street Oasis (WSO) have noticed the same trend. One suggests that online Zoom interviews might allow the process to start in senior spring, while another predicts that it will continue moving earlier, “Until it gets to the point where enough candidates sit out.”
The early bird catches the worm
While on-cycle recruitment timelines may appear to be nearing their limits, private equity firms continue to surprise. As a candidate, it’s wise to prepare for the possibility that the process could start even earlier this year.
To be on the safe side, you might want to set a reminder: “On-cycle recruitment kickoff.” There’s a space in your calendar on May 23…
For more information about the on-cycle process, read our article, Five tips for success in on-cycle recruitment from PE dealmakers.
