Private equity on-cycle recruiting: how to stay ahead

On-cycle recruiting is a week-long period every year where private equity firms compete to fill their incoming class of associates.

It’s known as a “feeding frenzy” for the biggest firms to land highly sought-after investment banking or strategy consulting analysts for their ranks, and it’s become so competitive that on-cycle hiring sometimes occurs more than two years before the class’s scheduled start date.

This hiring process can feel intimidating for analysts hoping to join the world of private equity, but we’ve found that understanding the following three components of on-cycle recruiting can help you be more prepared to interview and accept an offer.

You might land an associate interview before starting as an analyst

With so much time between on-cycle recruiting and a candidates’ start date, it’s not uncommon for top firms to source candidates directly from undergrad – before they even start in the analyst roles they need prior to joining the world of private equity.

If this is the case, and you already know you want to work in private equity within the next few years, conduct thorough research on your top firms so you can make an informed decision when committing to one in advance.

Middle-market firms have also grown to be more competitive during on-cycle, so you should decide whether you want to work in a large firm and experience the more traditional private equity path or serve in a more dynamic role at a smaller one.

Be prepared to accept a position quickly

Given the competitive nature of on-cycle recruiting, hiring authorities could potentially extend an offer immediately after your interview.

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. If you feel you’ve met with the right firm and their team follows up with an appealing offer, you will likely need to sign quickly to secure the position.

Off-cycle is still an option to land compelling opportunities

Some candidates simply aren’t ready to commit to the private equity industry or to a specific firm two years in advance, and that’s okay. Off-cycle, which refers to any recruiting outside of the on-cycle period, is less competitive and allows candidates to make more informed career decisions further into their analyst tenure.

Related: Off-cycle recruiting back in style for private equity firms seeking dynamic talent

As on-cycle start dates have become increasingly delayed and firms have re-thought the ideal associate profile, many have turned to off-cycle recruiting to find the best talent.

The takeaway

It’s important to understand the on-cycle process if you’re an undergraduate student or analyst looking to break into private equity. If you’re considering participating in this competitive hiring period, decide on a few firms that interest you and ensure you’re comfortable with the delayed start dates.

And if you opt out of on-cycle, you can still land a strong role during the off-cycle period.

To learn more about our private equity recruiting practice, call or email Molly McQuade at (336) 579-1130 or molly.mcquade@charlesaris.com and/or Logan Spell at (336) 217-9107  logan.spell@charlesaris.com.