On-cycle recruiting, explained

If you’re an early-career professional looking to get involved in the private equity space, chances are you’ve heard about on-cycle recruiting.

On-cycle recruiting is the week-long period, usually during the fall, in which private equity firms compete to secure the best young talent for their future associate classes.

The on-cycle process starts abruptly as major firms simultaneously schedule interviews and send fast-expiring offers to pre-MBA candidates. This hiring spree is a symptom of the demand top firms place on emerging private equity talent and has existed for at least a decade. Off-cycle recruiting, another term you may have heard from this industry, simply refers to any private equity recruiting done outside of the on-cycle process.

If you’re thinking about breaking into this industry, on-cycle recruiting may seem intimidating. Luckily, our team has assisted in this process for many years and is here to share the three most important things candidates should know:

On-cycle recruiting can start at any time. Like a rogue wave, on-cycle recruiting arrives with little notice.

In fact, there’s no set start date for this process. Generally, a collection of the industry’s leading firms will trigger on-cycle recruiting by scheduling a swath of interviews for a specific week. Catching word of this, other competing firms quickly do the same to avoid missing out on the most desirable candidates.

On-cycle recruiting originally occurred in the spring, about a year before the associates’ start dates. But in recent years, the process has come earlier and earlier. Now, on-cycle recruiting typically kicks off in the fall – two full years before these hires will actually start at their new firms.

Understand the delayed start date. Before the on-cycle recruiting process starts, you will likely hear that it’s for the 20XX term. This refers to the year of the associate class’s start date, not the year that recruiting occurs.

For example, private equity firms kicked off on-cycle recruiting in late August of 2022 to fill positions for the 2024 term. This preemptive hiring spree stems from competition, but it also exemplifies the kind of foresight required to successfully operate in this industry. To be successful in private equity, it’s necessary to plan years ahead of the curve.

Be prepared to sign an offer. While most private equity professionals refer to the on-cycle recruiting period as a week or so, hiring authorities could potentially extend an offer immediately after your interview.

If you feel you’ve met with the right firm and their team follows up with an appealing offer letter, you will likely need to sign on short notice to secure your position. Firms will put short expiration dates on these offers to speed up the process and increase their chances of landing the best talent ahead of their competitors. Even if you’re prepared to sign quickly, not doing so in the time required by the hiring manager could lose you the position.

The takeaway: On-cycle recruiting is a hectic process, but your chances of success increase when you are abundantly prepared.

Having a clear understanding of the type of firm you want to work at, the timeline for which the position will actually start and what questions or concerns you may have for the hiring manager will contribute to your success during on-cycle recruiting.

To learn more about our private equity recruiting practice, call or email Clifton Vaughan at (336) 217-9133 or clifton.vaughan@charlesaris.com.