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đ Private Equity's Hunger Games
The latest on 2024 on-cycle recruiting for private equity, plus Amazon's ChatGPT competitor called Metis.
Together With
"You are going to spend 1000x more time in your surrounding 5 blocks than you will in any other neighborhood in your city. Thinking about all the things that New York City hasâor the next city hasâis a lot less important than thinking about the things within the five blocks where you live.â â Phil Levin
Good Morning! Nvidia bounced back 7% yesterday after a 3-day rout. Amazon is quietly planning a ChatGPT competitor called Metis. Cheap steakhouses are booming as Americans pull back on spending, and Cava and Sweetgreen are beefing up their menus. Harvard dropouts raised $120 million to take on Nvidiaâs chips. The clock is ticking on Jane Fraserâs Citi turnaround. Plus why researchers canât agree on how much happiness your salary can buy.
Attention private equity professionals: You can go from CIM to an LBO model in less than 5 mins with Mosaic. Itâs already used by funds like CVC and Warburg Pincus, get a demo here.
SQUEEZ OF THE DAY
Private Equity's Hunger Games
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Each year private equity funds compete aggressively for the newly minted investment banking analyst class, and each year âon-cycle recruitingâ gets pushed a little bit earlier.
On-cycle interviews, primarily conducted by large PE firmsâoften referred to as megafunds like KKR and Apolloâcan span from a few hours to several days. For instance, an interview at KKR could begin at 9am and culminate in a job offer for two years later by that evening.
This year, on-cycle recruiting kicked off on Monday evening, targeting 2024 college graduates who have yet to start their banking positions for roles beginning in 2026.
Apollo, KKR, and Clayton, Dubilier & Rice were the culprits that commenced the annual hunger games event for banking analysts. It only takes a few PE firms to start the frenzy, leading others to quickly join in - firms like Carlyle, Bain Capital, TPG, and more swiftly followed suit.
The recruiting race timeline used to be a post-Labor Day affair but has crept up every year, with last year's late July start already disgruntling many.
This yearâs timeline also caught many junior bankers off guard - many were out of town and scrambled to make it back to NYC to juggle hastily scheduled interviews (and most graduated college last month and are trying to enjoy their summer).
Takeaway: Starting salaries for PE associates at megafunds can exceed $300,000 in total compensation (latest comp deck here) - so it makes sense why some junior talent are ditching Europe trips with college buddies to come back and interview. It also guarantees stability for four years, a major advantage in the early stages of one's career.
But it begs the question - if these associates havenât even begun their banking jobs yet, on what basis are these private equity firms hiring? Without any real deal experience, it seems that factors like slight GPA differences or the prestige of their college or bank play a disproportionate role in hiring decisions, which may not necessarily predict future success as well as actual job performance and deal experience would.
P.S. If you're currently recruiting, we offer a comprehensive suite of resources tailored for private equity recruiting, including:
Exclusive premium resources available to our Insiders members.
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HEADLINES
Top Reads
Nvidia stock pops to snap 3-day rout (YF)
Amazon is working on ChatGPT killer called Metis (Quartz)
Volkswagen's $5B investment in Rivian boosts shares (YF)
As Americans pull back spending, these cheap steakhouses are booming (CNN)
Why Cava, Sweetgreen are beefing up their menus (Axios)
Harvard dropouts raise $120 million to take on Nvidiaâs AI chips (CNBC)
The most important stock market chart of 2024 (YF)
The clock is ticking on Jane Fraserâs Citi turnaround (WSJ)
Visa-Mastercard credit card settlement fees rejected (Axios)
How Delta made itself Americaâs luxury airline (CNBC)
U.K. elections could mean a big tax bill for private equity (Axios)
CAPITAL PULSE
Markets Rundown
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Stocks closed higher as Nvidia rebounded from correction territory.
Movers & Shakers
(+) Enovix ($ENVX) +35% because the company will deliver silicon batteries for mixed reality headset.
(+) Rivian ($RIVN) +9% after Guggenheim initiated coverage with a buy.
(â) Penn Entertainment ($PENN) -6% after a downgrade by Raymond James.
Private Dealmaking
Brookfield will take over Franceâs Neoen for $6.5 billion
Cerberus Capital Management invested $315.5 million into Eos Energy
EvolutionaryScale, a protein-building AI models developer, raised $142 million
Etched, a specialized chips maker, raised $120 million
Exsilio Therapeutics, a genome medicines startup, raised $82 million
Benchmark Mineral Intelligence bought Rho Motion for $50 million
For more PE, VC & M&A deals, subscribe to our Buysiders newsletter.
BOOK OF THE DAY
Calm In The Chaos
![](https://media.beehiiv.com/cdn-cgi/image/fit=scale-down,format=auto,onerror=redirect,quality=80/uploads/asset/file/bbd911a3-d3b9-4edf-9c76-f9c18f9f532f/Screenshot_2024-06-25_at_11.55.35_PM.png?t=1719388847)
Stacy Igel, founder of the global fashion line BOY MEETS GIRLÂŽ, walks you through the highs and lows of creating a business: how to establish a brand and attract customers, hire and fire employees, collaborate with business partners, rise up from the midst of discouragement, and not just survive the rollercoaster of entrepreneurshipâbut thrive.
Stacy shares her twenty-year journey of growing her company from the ground up while powering through lifeâs challenges. Today, with her clothing sold in Saks Fifth Avenue, Bloomingdaleâs, and other stores worldwide, Stacy has climbed to the top of the ladderâbut instead of pausing to look at the view, sheâs pulling other women up with her.
Embracing the Calm in the Chaos shares a realistic look at how to successfully balance the chaos of being a businessperson, a woman, and a parent.
âRun your own business, raise a family, and make a differenceâat your own pace.â
DAILY VISUAL
Inside Out 2 Dethrones Dune 2
Domestic box office sales
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Source: Axios
PRESENTED BY DOLLAR FLIGHT CLUB
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Round trip to Paris from $293
Hawaii from $161
Orlando from $38 (no joke)
DAILY ACUMEN
Kindness
Imagine a pebble tossed into a still pond. The ripples start small, but they expand, touching shores far beyond their origin. That's the magic of kindness - a simple act can set off waves of positivity that transform the world.
Consider the story of Jadav Payeng, who, as a teenager, began planting trees on a barren sandbar in India. One tree at a time, day after day, year after year.
Today, 40 years later, his "Forest Man of India" has grown into a lush 1,360-acre forest, home to elephants, rhinos, and tigers. Or think of the "Pay It Forward" movement, sparked by a novel and a film, that's inspired countless acts of generosity worldwide.
Science backs this up too - researchers have found that kindness is contagious, spreading up to three degrees of separation.
Your smile can literally brighten someone's day, who then uplifts another, creating a domino effect of joy. So today, ask yourself: what ripple will you create? What small act of kindness can you perform that might just change someone's world?
Remember, in a world where you can be anything, be kind. Because in the end, it's not just about changing the world - it's about changing someone's world. And that someone might just be you.
ENLIGHTENMENT
Short Squeez Picks
How to harness emotional intelligence to reduce stress at work
Why researchers canât agree how much happiness your salary can buy
Anti-inflammatory foods to eat regularly
If you answer âalwaysâ to these 8 questions, you're mentally stronger than most
The psychotherapist delving into our deep anxiety about finances
MEME-A-PALOOZA
Memes of the Day
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