The First Cut is the Deepest? Nepo Babies & ESG Greenwashing, Celebrating 80-Hours Work Weeks

"Every successful business is full of people who spent money nurturing unremarkable talent." - Eric, Industry, HBO

Good Morning,

• The Fed is poised to cut interest rates for the first time since 2020, with traders evenly split between expectations of a quarter-point or half-point cut. This uncertainty has sparked volatility in financial markets, as investors grapple with conflicting economic signals. The bond market is pricing in significant rate cuts, potentially indicating recession fears, while the stock market remains optimistic with the S&P 500 near record highs. Recent economic data has been mixed, showing cooling inflation and subdued factory activity, but also a resilient job market, leaving investors uncertain about whether the economy is normalizing or heading towards a downturn. (WSJ )
• The Fed’s regulatory chief outlined a plan to raise big banks' capital by 9%, significantly easing an earlier proposal after intense Wall Street opposition. There remains considerable uncertainty over how lenders will fare .
• JPM shares sank after the president of the largest U.S. bank tempered its outlook for earnings from interest payments. Meanwhile, the company is focused on succession planning.
• In a landmark shift for Wall Street’s notoriously demanding work culture, financial giants JPMorgan Chase and Bank of America are implementing sweeping new policies aimed at combating the chronic overwork of junior investment bankers . This move comes in response to a series of alarming incidents and revelations that have forced the industry to confront its long-standing issues with extreme work hours and employee?burnout .
• HBO's "Industry" serves up a heady cocktail of cocaine, callousness, and capital gains that's hitting a little too close to home for Wall Street's finest. The show's ex-banker creators gleefully skewer everything from ESG greenwashing to nepo babies, leaving viewers to wonder if the only fiction is the characters' names. (Fast Company )

Check us out in Fortune Magazine, "How to get a job at Thoma Bravo, one of the most sought after PE firms ".

Resource Center

Why There are Less Mid-Level Promotions Now

The Impact on Rising Associates/VPs/Directors

In recent years, a significant issue has emerged in?investment banking : the difficulty of getting promoted especially for mid-level employees. This problem is creating frustration for bankers and headaches for banks. Let’s dive into what’s really going on and explore the complexities of this situation.

Read More

Recruiting Update

If you are looking to hire, please contact me [email protected] .

Emerging Trend: Quiet Layoffs Over Extended Promotions

A concerning new development has emerged in response to the promotion bottleneck :

• High-Risk Positions: Bankers at Associate 3, VP 3, or Director 3 levels are most vulnerable to being quietly laid off.
• Stealth RIFs: Many banks are opting for discreet layoffs or giving employees time (1-2 months) to find new jobs, rather than extending promotion timelines.
• Anticipated October RIFs: There's growing speculation of more reduction-in-force (RIF) actions coming in October, despite claims of robust pipelines.

Impact on Recruitment

The promotion crisis is reshaping recruitment trends and sector activity:

• Importation of Senior Talent: Banks are increasingly bringing in proven originators at the MD level rather than promoting from within, further limiting internal advancement opportunities.
• Junior Talent Focus: Recent hiring has primarily targeted Senior Analyst, Associate and Jr. VPs, favoring execution capabilities and strong technicals. Even VPs are getting crazy technical interviews.
• Experience Premium: Banks showing strong preference for candidates with 3-5 closed deals. Live/hung deals don't count.
• RIF Challenges: Most elite boutiques and bulge brackets remain hesitant to consider candidates impacted by layoffs or those attempting to re-enter after extended breaks (>6-months).
• Accelerated Junior Hiring: Banks are moving VERY quickly to secure TOP junior talent, potentially causing a concerns for FLIGHT RISK. Check in with your people.
• Deal Closure Difficulties: Despite robust pipelines and claims of active mandates, many bankers report challenges in getting deals across the finish line.
• Career changes and sector switchers are still struggling in this market.
• Sector Variations: Healthcare services, biotech, and tech remain very active, with a pickup in financial services and fintech. However, industrials, consumer, and real estate sectors are still sluggish.

Prospect Rock Academy

Prospect Rock Academy is an educational platform dedicated to helping students, entry-level professionals, and career changers break into investment banking. We offer affordable online courses, one-on-one coaching, and a comprehensive newsletter covering recruiting and the current job market.

Book a 15-Minute Consult

The Ultimate Guide to Bouncing Back from No-Return Offer

Meridith Dennes, Managing Partner of Prospect Rock Partners, and Andrea Benson, Managing Director at the firm, discuss critical strategies for investment banking interns who did not receive a full-time offer post-internship. Andrea shares insights from her 15 years on Wall Street, including 11 years in campus recruiting, on how to professionally handle the disappointment, utilize reflection and feedback, and develop a plan to reenter the industry. The discussion includes practical tips on networking, securing recommendations, skill development, and crafting a narrative for future job applications. The course concludes with the importance of staying positive and casting a wide net in job searches, emphasizing that setbacks can be stepping stones to eventual success in the competitive world of investment banking.

ENROLL TODAY ($149)

How to Land a Summer Internship in Investment Banking

Prospect Rock Academy introduces a cutting-edge course tailored for the next generation of investment banking leaders. This program equips ambitious undergraduates and MBA students with the strategic acumen necessary to secure a summer internship in investment banking.

ENROLL TODAY ($199)

HOT JOBS 9/16

Please PM me on Linkedin or shoot me an email if you want to learn more about a specific role. Must have at least 1-year prior IB M&A experience. Visas (H1Bs, Stem, L1s, TNs) are tough in this market. No Recent Grads. Lateral hires only.

Can't find the job you're looking for? Please submit your resume to be added to our database to be considered for future opportunities.

Submit Your Resume

Venture Capital Business Analyst

New York, NY

Apply

Investment Banking Analyst 2/3 Technology M&A

San Francisco, CA

Apply

Investment Banking Analyst 2/3 Fintech

New York, NY

Apply

Investment Banking M&A Tech Analyst 2/3

San Francisco, CA

Apply

Investment Banking Analyst 2/3, Technology M&A (Software)

New York, NY

Apply

Investment Banking Healthcare M&A VP 1/2

New York, NY

Apply

Investment Banking Analyst 2/3 Healthcare M&A

New York, NY

Apply

Investment Banking Analyst 2, Healthcare Services and Technology M&A

New York, NY

Apply

Investment Banking VP1/2 Software M&A

W. Palm Beach, FL

Apply

Investment Banking Associate 1/2 Tech M&A (Strong Middle-Market)

San Francisco, CA

Apply

Investment Banking Restructuring Advisory Associate 1/2 (Elite Boutique)

New York, NY

Apply

To make sure you don’t miss a beat, take a second to follow these simple steps:

If you use Gmail: Add this email to your primary inbox. In the Gmail app, tap the three dots in the top right corner and select "Move to" > "Primary". On desktop, drop this email in to your "Primary" folder in your inbox feed. If you use Apple Mail: Tap our email address at the top of this email and select "Add to VIPs".