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| Man in a suit exits the Wall Street subway station Momo Takahashi |
The annual tug-of-war between Wall Street’s investment banks and private equity firms over junior talent has escalated into a full-blown summer saga. What began as routine poaching of promising analysts has morphed into a coordinated defensive push by the largest banks — from Goldman Sachs to JPMorgan — to keep their youngest dealmakers from jumping ship too soon.
The drama kicked off in June when JPMorgan stunned the industry by sending a pointed memo to incoming junior bankers: accept a future-dated job with a buyout firm, and you’ll be fired. The message was clear — the bank was drawing a hard line against private equity recruiting practices that have long siphoned off top performers barely a year into their investment banking careers. Within days, major private equity giants, starting with Apollo Global Management, announced they would delay their recruiting timelines until 2026, a move intended to de-escalate tensions and avoid further backlash.
Since then, other top banks have rolled out their own rules aimed at discouraging — or at least controlling — the flow of young talent to the buy-side. The policies vary in severity, from outright termination to more flexible approaches that allow disclosure without job loss, but they all share a common rationale: preventing conflicts of interest.
The concern is not purely about talent retention. Banks often pitch advisory services to the same private equity firms that are signing future job offers with their analysts. Allowing young bankers to lock in an exit before completing their two-year stint could create awkward situations — or worse, compromise client relationships. For junior analysts, the stakes are equally high. Losing their banking role can jeopardize the very private equity offer they secured, while being reassigned to a non-dealmaking role can undercut the valuable M&A experience buy-side firms expect.
Here’s a closer look at how the five largest U.S. investment banks are tackling the issue — and what it means for their junior ranks.
Bank of America
Bank of America is taking a softer, disclosure-first approach. According to a person familiar with the policy, analysts will be asked to reveal whether they have accepted offers for future-dated jobs. Those who admit to having such offers won’t be fired, but they will be reassigned to a different area within the bank, away from client-facing deal teams. The aim is to mitigate any potential conflicts without completely severing ties with the analyst.
Citi
Citi formalized its policy in July, requiring new junior bankers to complete an attestation disclosing whether they have accepted any future employment offers outside the firm. Disciplinary actions for those with future-dated jobs will be determined on a case-by-case basis, according to an internal memo obtained by Local press. This flexible approach allows managers to weigh the specifics of each situation before deciding on reassignment or other consequences.
Goldman Sachs
Goldman Sachs has opted for a system of ongoing monitoring. In a July memo, the bank informed junior analysts they will be required to attest quarterly whether they have accepted another job. Disclosure will not result in termination, which may encourage transparency. In a bid to offer an internal alternative for buy-side–minded juniors, Goldman has also introduced a program for select hires: a full-time offer in investment banking with the option to transfer to the firm’s asset management division after two years. By creating an in-house career path that mimics the traditional banking-to-buy-side trajectory, Goldman hopes to retain ambitious talent while satisfying their long-term career goals.
JPMorgan
JPMorgan has taken perhaps the hardest stance of all. According to a June letter sent to incoming analysts, anyone who accepts another job before or within the first 18 months of employment will be given notice and have their employment terminated. The bank has also warned that skipping training sessions or client meetings to attend private equity interviews — a practice common in 2023 — will be grounds for dismissal. JPMorgan’s no-tolerance policy signals that it is prepared to enforce strict discipline to keep analysts fully engaged during their early years.
Morgan Stanley
Morgan Stanley got ahead of the current wave of policy changes, formalizing its stance in May. The bank requires analysts to attest to their job status quarterly. Those who disclose future offers will not be fired, but failure to disclose can result in disciplinary measures, including termination. This blend of transparency requirements and targeted enforcement mirrors Goldman’s approach, striking a balance between retaining staff and protecting client relationships.
The competitive war for junior talent between Wall Street and private equity is not new, but the intensity of the current standoff reflects deeper shifts in the industry. Private equity recruiting has been happening earlier and earlier, sometimes within months of analysts starting their first job, creating a race that banks believe undermines both training and client service. By tightening rules, the biggest banks are betting that they can slow the pipeline of young talent flowing to buyout firms — or at least ensure that those who do leave finish their tenure without conflicts.
For junior bankers, the message is clear: be strategic about your career moves, understand your firm’s rules inside and out, and recognize that the decision to take a future-dated offer now carries more risk than ever before.
