Recruiting Q4-2023: mission impossible?

So far this year has been really awful for job opportunities. August is generally quiet and this year has been no exception. Can we expect an acceleration during the last quarter of the year ? What's the sentiment ? What have you heard from recruiters lately ?

 
Most Helpful

Its going to be extremely tough out there for awhile. I know plenty of firms still holding onto staff that they don't need on hopes of a rebound. We let go of most of our acquisitions team. Only opportunities will be asset management because those are going to be the problem areas. If your goal is acquisitions/development, its going to be really tough out there, there is no sugar coating it. If your looking for any job, asset management or special servicing is where you'll find something, but I know many that would not enjoy to be in those positions.

The market is going to be really tough for awhile. CRE pay will be lower as well. We're likely looking at at least 2-3 years of pain before things start to stabilize. I could very well be wrong, but thats just my guess here.

 

What's your take on capital markets (d/e and IS) positions? I still see plenty of deals getting done it seems like on LinkedIn. For me, since I have been out of a job a few months and on the outside looking in, it really looks like the doom and gloom is overblown? However, yeah the hiring right now is very very slow and there are not many exciting opportunities on the market at the moment. 

 

There's deals happening, but I'm willing to bet they're mostly concentrated with the best teams. These deals are also mostly being done out of necessity (maturities, end of fund, etc.), so volume is still way down. Looking at latest quarterly revenues from the big brokerages, it doesn't look like the doom is overblown. 

 

Its going to be extremely tough out there for awhile. I know plenty of firms still holding onto staff that they don't need on hopes of a rebound. We let go of most of our acquisitions team. Only opportunities will be asset management because those are going to be the problem areas. If your goal is acquisitions/development, its going to be really tough out there, there is no sugar coating it. If your looking for any job, asset management or special servicing is where you'll find something, but I know many that would not enjoy to be in those positions.

The market is going to be really tough for awhile. CRE pay will be lower as well. We're likely looking at at least 2-3 years of pain before things start to stabilize. I could very well be wrong, but thats just my guess here.

Curious what your board's game plan is by culling your acquisitions team? Sure, there are hundreds more acq guys waiting by the door, but your current team is a known quantity (hopefully a good one) and will be ready to go when the market recovers.

Is it not short sighted to cull the team, only to put together a completely fresh team once work comes back?

Or are margins so thin that you can barely keep the lights on

 

Top performers were kept around and are helping on asset management.

In fairness, my firm kept the team around for awhile. Most of them were doing nothing for quite awhile and they got good severance packages. I think they are thinking long-term there is going to be serious problems due to the lack of transactions. They probably ran the numbers and thought its just too expensive to keep people around when there is no work.

Also theres are ton of people that got let go, many that are top performers, looking for jobs in acquisitions. I think they kind of know this and are okay with hiring a new team.

 

Out of necessity, trying to make the jump from ASO1 on a solid D/E placement team placement to REPE AM right now. I had no idea it was going to be this brutal…

 

are you trying to make the switch because your comp is getting destroyed because few deals or fear of getting laid off? If you were trying to get to acquisitions as an assoc 1 don’t you think AM wouldn’t be the best look? you’d be making a lot of moves no? no clue just curious

 

Also Institutional Investors are trying to cut the CRE exposure as much as they can

 

I think its gonna be rough until at the earliest next year. Your best bet is well capitalized developers/family offices and asset management roles. 

My take is that until we get an actual fed pivot, which typically coincides close to a macroeconomic bottom, most investment teams are going to be sitting around idle. Those layoffs are happening because management at those shops has a stance that we are in this shitstorm for longer than a few more months. I think if we're lucky we might get a pivot by the end of the year, more likely sometime next year. Once pivot happens, I think hiring will spring back into action. 

 

The latest I heard from the recruiters is that the activity is picking up but the fundraising is super slow hence the recruitment is still pretty stagnant.. what a shitty market honestly!

 

Coming from an acquisitions guy who was recently laid off, it is very tough out there to find any acq/development roles. Recruiters are optimistic more roles will be posted after Labor Day, which will be interesting to see if true. All firms I've spoken to are waiting for transaction volume to pick up to even consider adding headcount, which will be very difficult to time given the lack of clarity in the market. 

Starting to consider AM roles or moving to the debt side. I've also noticed a serious lack of roles in the Northeast, with more seen on the West Coast and in Sunbelt markets. Will be interesting to see what the fall brings... 

 

Is it me or the market seems to have slowed down even further vs August?

 

Iusto vel veritatis natus illo. Ut voluptatem et ut id eos. Tempora voluptatem odit natus aut. Natus aliquid et rerum cumque nemo.

Career Advancement Opportunities

May 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. New 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 04 97.1%

Overall Employee Satisfaction

May 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

May 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

May 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (20) $385
  • Associates (88) $260
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (67) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (146) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
Betsy Massar's picture
Betsy Massar
99.0
5
GameTheory's picture
GameTheory
98.9
6
dosk17's picture
dosk17
98.9
7
kanon's picture
kanon
98.9
8
CompBanker's picture
CompBanker
98.9
9
bolo up's picture
bolo up
98.8
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”