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Picture this: youve just graduated from college, and youre gearing up to take on a six-figure investment banking position. You might have grand plans to backpack through Europe or catch up on sleep before diving into the demanding world of 80+ hour workweeks. However, your plans could be interrupted while youre relaxing in a French hostel. A private equity recruiter could reach out, urging you to jump into interviews for a position that wont even start for another two years. Welcome to the chaotic world of on-cycle recruiting in private equity.

On-cycle recruiting is a phenomenon in which the timing of hiring is shrouded in uncertainty. Not even the recruiters themselves can predict exactly when this process will commence. According to a newsletter from Amity Search Partners, the timeline for these recruiting cycles has varied significantly: it began on August 29 in 2022, shifted to July 21 in 2023, and is expected to kick off as early as June 24 in 2024.

Once one private equity firm initiates its on-cycle recruitment, aspiring candidates, primarily junior investment bankers, must be prepared to abandon their vacation plans or any training for their investment banking roles to jump into the interview process. This urgent need to respond has been previously reported by Business Insider.

The on-cycle recruiting practice is not without its critics. Senior executives at investment banks, particularly those who find their top talent targeted by private equity recruiters, have voiced their concerns. Jamie Dimon, the CEO of JPMorgan, has labeled the practice as unethical, expressing intentions to eradicate it within his own organization.

Interestingly, this trend has also led some private equity firms to hesitate. Industry insiders have noted that the earlier timeline for recruiting has become so rushed that candidates are forced to make significant career decisions before they feel fully ready.

In an effort to demystify this process, we connected with experienced recruiters specializing in filling entry-level roles in private equity. They provided insight into how on-cycle recruiting functions, how candidates can assess if its the right fit for them, and the best ways to prepare.

One key takeaway from recruiters is that on-cycle recruiting constitutes only a small segment of the overall private equity hiring landscape. Thus, there's no substantial disadvantage to waiting for alternative opportunities. According to Danielle Strazzini, co-founder of Bellcast Partners, on-cycle recruiting accounts for merely 10% of the positions filled in any given years associate class in private equity. This leaves plenty of room for candidates to pursue other avenues.

Strazzini emphasized, Its become such a small part of recruiting, revealing that off-cycle recruiting is where most action is occurring. Other recruiters echoed this sentiment. For example, Holly McCarthy, founder of Opus Advisors, noted that a significant portion of her firms recent focus has been on filling associate roles with imminent start dates, such as for summer 2025, rather than positions starting in 2026 or 2027.

As for who should consider on-cycle recruiting, its primarily suited for those who are well-prepared. Candidates need to have a clear vision of their career trajectory, particularly if they have been contemplating a move into private equity since their freshman year. Strazzini pointed out that some candidates start laying the groundwork early, often through connections in the industry or by consistently following financial news.

Recruiters caution that those who hastily rush into interviews without adequate preparation risk damaging their professional reputation. Shannon Simons, managing director at Opus Advisors, remarked, First impressions matter, and candidates should begin recruiting when they are ready. She added that firms are generally reluctant to reconsider candidates who did not perform well during the initial recruitment cycle.

Strazzini further warned against the dangers of entering the on-cycle recruiting process prematurely, suggesting that developing technical skills during a junior banker position is crucial before stepping into interviews. On the flip side, its important not to delay too long either. McCarthy explained that candidates who only engage late in their two-year banking tenure may face scrutiny over their extended wait time and the absence of current offers.

Knowing what you want is crucial before diving into the recruiting process. Candidates should have a good idea of their desired focus areas, whether that be healthcare, media mergers, or a generalist path. This clarity will help align their goals with their current investment banking experience, making it easier for recruiters and interviewers to see genuine enthusiasm for specific roles.

Strazzini noted that specificity can enhance a candidates profile. If applicants present broad interests, they risk being perceived as less passionate about the positions available. Simons illustrated this point by contrasting a candidate with generic responses about the consumer sector against one who shares personal experiences, such as reselling sneakers or discussing beauty trends.

Moreover, during the on-cycle recruiting process, which often moves at lightning speed, time is a valuable asset. Therefore, candidates must be transparent with their recruiters about their true interests. Hilary Hurley, managing director at Amity Search Partners, advised candidates not to waste time interviewing with firms they arent genuinely interested in, as it can dilute their focus.

If you believe youre ready for on-cycle recruiting, there are indicators that can affirm this. Having attended on-campus recruiting events, completed top internships, and secured an offer from a reputable bank are strong signs of preparedness. Recruiters recommend utilizing study guides, like those provided by Peak Frameworks or ReCalc, to practice essential skills such as building financial models or tackling case studies. If you struggle with these preparatory tools, it might be wise to reconsider jumping into the on-cycle recruiting fray.

Ultimately, candidates should view recruiters both as their initial point of assessment and as career advisors. Open communication about preferences and aversions with recruiters will lead to better job matches. As Hurley pointed out, if a candidate is clear about their disinterest in a specific sector, like healthcare, it makes little sense to pursue an interview there.

Recruiters are compensated to place candidates effectively, so they will prioritize candidates who are candid about their career goals. McCarthy emphasized that recruiters serve as a buffer between firms and candidates, tasked with providing a curated list of high-quality, vetted applicants.

Moreover, candidates should conduct thorough research on potential employers and strive to establish networks before interviews. Sending thank-you notes post-interviews can help reinforce connections, provided its done judiciously. McCarthy mentioned that connecting with individuals at a firm can yield valuable information and showcase sincere interest, but candidates must also recognize that busy professionals may have limited responses.