- Private equity restarted aggressive on-cycle recruiting in early 2026, courting first-year and incoming bankers for 2027 starts.
- JPMorgan and Goldman are pushing back with strict rules, including termination threats for early PE acceptances and regular no-offer certifications.
- Bank pay rose in 2025 and narrows the gap, but PE’s carry still drives interest even as higher rates and slower exits delay payouts.
- The fight centers on who captures the value of junior training, with banks facing retention and valuation risk and PE risking mis-hired, underprepared talent.
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The rivalry between private equity firms and leading investment banks such as Goldman Sachs and JPMorgan over junior and future bankers has entered a more intense phase in early 2026. PE firms like Blackstone, Apollo, Carlyle, TPG and others relaunched aggressive recruiting drives for the associate class of 2027, even after a pause in on-cycle offers following criticism by JPMorgan CEO Jamie Dimon and others. These firms held large-scale interview sessions in January to secure talent. [n1]
In response, investment banks have adopted countermeasures. JPMorgan issued a policy in mid-2025 warning incoming analysts that accepting future-dated offers before or within 18 months of starting would lead to employment termination. It also shortened its analyst-to-associate progression from three years to two and a half. [n2][n3] Goldman Sachs similarly requires new analysts to periodically certify that they have no outside offers. [n2]
One major driver of PE’s allure is compensation. While entry-level total compensation in banking (base plus bonus) has been rising (analyst roles at $160K-210K; associates $275K-475K) in 2025, PE associates and VPs can still generate outsized returns over time via carried interest. Yet market conditions—higher rates, slower exits—are compressing PE returns and delaying reward realisation. [n4][n5]
This dynamic creates strategic risk for banks. Investment in training analysts (in terms of cost, mentoring, exposure to complex transactions) is high, and banks are seeing premature talent loss before the full return on that investment is realised. Retention programs, loyalty pledges, deferred comp, and internal mobility become essential tools. [n2][n8]
On the PE side, while early offers help secure top candidates, they risk bringing in individuals who are under-prepared or misaligned with longer term portfolio management demands. Further, delays in exits, activated capital, and AUM under performance pressure introduce financial risk into the PE career promise. [n2][n6]
Looking forward, this talent tug-of-war may reshape recruiting norms, compensation structures, and how both banking and PE assess human capital as part of valuations. Banks that can adapt with more competitive compensation, flexible career paths, and earlier stakes of ownership today will likely fare better in securing and retaining elite junior talent.
Supporting Notes
- On-cycle recruiting resumed in January 2026 with major PE firms conducting interview sessions for roles starting in 2027. [n1]
- JPMorgan policy: incoming analysts who accept future-dated offers before joining or within first 18 months will be terminated; program shortened to 2.5 years. [n2]
- Goldman Sachs requires quarterly certifications from analysts that they hold no pre-dated job offers. [n2]
- Banking compensation in the U.S. for analysts totals ~$160K-$210K; associates $275K-$475K in 2025. [n4]
- Private equity RE still offers carry, which remains a differential despite tougher exit conditions. [n2][n6]
- The attrition risk for banks includes not just direct cost but potential valuation drag from high turnover and human capital instability. [n2]