Private equity firms are outshining investment banks in the battle to recruit graduate talent, as hiring activity in traditional finance roles slows amid reduced M&A volumes and sluggish IPO pipelines.

While bulge-bracket banks such as Goldman Sachs now accept less than 1% of nearly 875,000 annual applicants, buyout groups including Apollo, KKR, and TPG are accelerating their hiring processes, often locking in top talent before they even enter the workforce. These firms are actively targeting undergraduates and early-stage graduates, offering compelling career alternatives to the shrinking analyst tracks at banks.

The shift in recruitment dynamics comes as banks scale back junior roles. Bank of America cut 150 investment banking positions in early 2025, and EY postponed start dates for its US deals division for a third consecutive year. Meanwhile, executive search firm Silvermine Partners reports “extraordinarily quiet” hiring at the junior level, citing over 5,000 applications per role in some instances.

Business schools are responding to this pivot. Institutions like Skema Business School, Cambridge Judge, and MIT Sloan have expanded their focus to include private equity, capital markets, and data science. MIT Sloan reports that over 40% of its Master in Finance graduates in 2024 entered quantitative or data-driven roles.

“Demand for scalable and tailored asset-backed financing solutions from fintech lenders has increased as they mature and seek efficient ways to fund their growth,” said Akhil Bansal, Head of Asset-Backed Finance at Carlyle, highlighting the broader appetite for talent in new financial verticals.

Placement rates remain strong for top-tier programmes. According to the 2025 Financial Times rankings, HEC Paris and ESCP Business School graduates reported average salaries exceeding $160,000 just three years after graduation.

As private equity expands its reach, graduates are increasingly seeking roles in buyout firms, private credit, and alternative asset management. With fast-track recruitment, global opportunities, and attractive compensation, private equity is reshaping the future of graduate finance careers.

Source: Financial Times

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