Apollo Global Management indefinitely postpones the recruitment of its 2027 associate class - a move that follows an increasing escalation in the battle for young talent between private equity firms and Wall Street banks. The decision is seen as a direct response to sharp criticism from leading bank executives, including Jamie Dimon of JPMorgan, of the practice of binding students long-term to buyout firms before they begin their analyst programs.
The industry had outbid itself in an increasingly early competition for university graduates in recent years. Private equity firms like Apollo, KKR, and TPG had gradually moved the recruiting window from fall to spring – that is, to the period before graduates could even begin their analyst program at investment banks.
JPMorgan recently threatened to fire future analysts if they take up a position already contractually agreed with another employer, such as a PE firm, within 18 months of starting work. Dimon called the behavior of the private equity industry "unethical" as it creates conflicts of interest for young talents potentially working on deals in which their future employers are involved.
Apollo CEO Marc Rowan commented on Wednesday: “When someone states something that is simply true, I feel compelled to agree.” He supported the bank executives' view that the recruitment process has gotten out of hand and puts students under pressure to make long-term decisions before they even know the market or their own preferences.
The company informed students in a letter that it would not be conducting formal interviews or making offers for the Associate Class of 2027 this year. At the same time, Apollo emphasized its desire to remain in contact with potential candidates and maintain long-term interest in collaboration.
Internally, the measure is seen as a signal to the industry to slow down the escalating race for talent. Leading investment banks increasingly see themselves in the role of training facilities, losing the best minds to private equity firms right after onboarding—a dynamic that also causes internal discontent but has so far been hardly addressed publicly.
