What EFC says about 2023’s Job Outlook
Key Take-Aways from the efinancialcareers article
“Between Q3 2017 and Q3 2022, headcount at Goldman Sachs increased 36%, an addition of 13,000 people. When Goldman cuts what are expected to be 4,000 staff in 2023, insiders say the cuts won’t just be in the consumer bank but spread across divisions. Lists of the unlucky were being drawn up into year-end.“
“2023 could be a shock. Q1 will be “bloody,” says Barney Mundell, at search firm Loxton Partners”
“At Citadel, for example, the Wall Street Journal reported that the flagship fund rose 32% last year“
“If you work in distressed debt, 2023 could be your year. As defaults on junk loans rise from their lows of around 1.6%, distressed investing opportunities are expected to proliferate. Don’t discount ESG next year, though. McKinsey & Co. is bullish about ESG revenues and by implication jobs, which it predicts will grow in the US and Asia.”
“For junior investment bankers, the coming year could be doubly raw. Not just investment banking jobs, but private equity jobs are likely to disappear. PE is never easy to get into. As the private equity industry undergoes its own rationalization, in 2023 it could be harder than ever. If you’re a junior banker, the exit options are narrowing.
That’s the bleak prognosis. There will, however, be opportunities for those who position themselves well. There will be hiring in thriving niches. Those niches are likely to include…
Boutiques will seek to take advantage of the discomfort of big banks, predicts Mundell. “The better placed boutiques, as ever, will continue to hire opportunistically as they seek to increase market share in an environment ripe for it,” he says. Moelis & Co. has already said it’s “leaning in” to hiring.”
^^this article is a bit nuts, as we approach a new year — it definitely wasn’t the most optimistic thing to read. I think 2023 is going to be an interesting one to say the least – we’ve been doing this now for almost 3 years in a bull market and it seems like we’re about to see a change. If anything, we should get busier since the actual interviews are about to get tougher…
Scroll down for a few new content pieces but I’ll leave you with this — we’ve had a couple new Coaches come on recently that want to help out Mentees in the new year and for that we’re offering up a HUGE discount for an hour long coaching call (can be used for behavioral, technicals, modeling, mocking your story, etc.) + PE Platform Access… now more than ever, we want our Mentees to be PREPARED and READY for anything that comes their way when it comes to the recruiting/hiring/lateral market.
Code: ‘PLATFORMONLY’ (takes $700 off the $999 Buyside Starter kit making it only $299 for 1-hour of Coaching and PE Platform Access)
Talk about a Great Deal to get started w/Coaching! Make 2023 your year!
The OfficeHours Guide to Private Equity Part 4: Megafund vs. Middle Market Private Equity
Private equity is not a one-size-fits-all industry. While all PE firms are in the business of acquiring companies and generating superior returns for their LP’s, the culture and day-to-day can vary widely across different funds. It is important to be thoughtful about whether or not to pursue private equity and understand what you are signing up for across the range of PE firms. Nevertheless, the learning opportunities are outstanding and sets you up for a long and successful career no matter what you decide to do in the long run.
So how do you deal with low morale?
“I and no one can tell you exactly how you should handle them without having spoken with you and understanding your exact situation and where your head’s at, but hopefully the tactics below and the stories that come with them can be of some help.”
1. Rally Support
2. Embrace and Learn from the Suck
3. Breathe and Process
“Similarly, after pivoting to PE I spoke to my OfficeHours coach about the imposter syndrome I was feeling at work and how paralyzed and down I felt most days because of it. Like my friend’s manager, I was told “The anxiety you’re feeling makes sense. This is a highly competitive environment and you do come from a different background. Learn from that. But the anxiety itself isn’t serving you, if anything, it’s making your ability to perform in this highly competitive environment worse. Breathe. Soothe the anxiety. Let the low pass. And then see why the low was there and do something about it.””
How much do you plan on spending on New Year’s Eve?