With Labor Day now behind us, we cover three talent topics in this newsletter important for this fall and beyond: Associate hiring for private equity firms, remote work, and non-compete contracts.

Firstly, we expand on this year’s on-cycle recruitment, which started with a bang in July 2023. It raced ahead of the typical starting line and surprised the new Investment Banking Analysts, many of who were still in training. Yet, while PE speedsters aimed for early bird hires, they typically secured fewer Analysts than expected, leaving many firms with vacant spots for their 2025 classes. The rush led to historically low participation rates and Analysts, caught in the whirlwind, shared with us their reasons for not participating. While on-cycle hiring for 2025 might have left some seats empty, the stage is set for off-cycle recruiting when firms have even more visibility into market conditions to influence their hiring plans and a potential encore “on-cycle 2.0” as there remain many diverse bankers who are taking time to contemplate their next role.

On-cycle kicked off when some IB Analysts hadn’t even hit their desks yet, while many investment professionals on the buy-side still aren’t working from their desks full-time. Hybrid work remains the norm in the land of alternative investments, although three years have passed since the COVID-19 pandemic necessitated remote work. The topic of returning to the office remains a prominent issue, with many employers still determining the best plan for remote work policies. Even Zoom, a company essential to the implementation of remote work, is now requiring employees to return to the office at least two days per week.¹ How do in-office policies differ among the alternative investment industry and how do investment professionals feel about their current hybrid schedules? We share details from Odyssey’s latest survey.

Lastly, despite the fact they are usually tucked away in the back of employee contracts, we put the spotlight on non-compete agreements in the alternative investment space due to proposed legislation that may impact their enforceability. We delve into the current prevalence, length, and effectiveness of these agreements, shedding light on how they affect hiring, as well as potential future implications due to legislation changes.

We hope you enjoy the beginning of fall.

The Odyssey Search Team

¹ Goldberg, Emma. “Even Zoom Is Making People Return to the Office,” The New York Times, 7 August 2023