Major US buyout firms, including Apollo Global Management and KKR, have halted their long-standing practice of early recruitment from investment banking graduate pools, following a policy clampdown by JPMorgan Chase CEO Jamie Dimon.

Traditionally, June marked the start of “on-cycle” recruiting in private equity, targeting soon-to-be analysts at top Wall Street banks, often hiring them for roles set to begin years later. However, JPMorgan’s recent warning that any new recruit who accepts a future-dated job with another company before starting at the bank or within their first 18 months of employment would be dismissed prompted a swift industry-wide rethink.

Despite having already initiated informal “coffee chat” sessions and screening processes for candidates, no major private equity firms launched formal interviews or made offers during the typical June window.

Apollo, historically one of the earliest and most active recruiters, announced it would delay associate hiring until 2026 for 2027 intake. General Atlantic and TPG soon followed. Most other firms have yet to disclose updated timelines, but insiders anticipate that high-profile players will wait until autumn or winter to resume activity.

The shift has caused frustration among graduates, many of whom relocated to New York and prepared extensively for the traditional interview timeline, only to face unexpected delays. The new timing means these candidates will now have to navigate the recruitment process alongside demanding investment banking schedules.

While the move may alleviate tensions between private equity firms and their banking counterparts, who have long resented their newest hires locking in exit roles almost immediately, it has also introduced new challenges. Banks now face the possibility of a talent surplus, as slower hiring across private equity, hedge funds, and corporates limits natural attrition.

A senior Goldman Sachs banker commented that private equity might pivot to hiring directly from universities in response to the disruption.

Source: Financial Times

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