When it emerged in March that Blackstone was expanding in Europe and opening a new office in London, we suggested that this was exciting news for all the junior bankers from Goldman Sachs and JPMorgan that the private equity firm is keen to hire. Seven months later, it looks like Blackstone’s hiring could include people at BoA, Citi, Morgan Stanley, Deutsche Bank, and maybe even Commerzbank.
After hiring 200 people in Europe between 2020 and March 2022 and currently having 500 employees in London, Blackstone announced on Friday that its new office in London’s Berkeley Square will have 1,800 “jobs”. The conclusion is that headcount in London could more than triple once construction of the new purpose-built European headquarters is complete in 2028. Blackstone paid its 339 non-partner employees in the UK an average of £371,000 ($411,000) for the year ended March. 2021; The partners received £1.8m each.
Blackstone’s enthusiasm for the UK also comes from the fact that CEO Steve Schwarzman has bought his personal piece of England in the form of Conholt Park, a 2,500-acre estate in Wiltshire. This coincides as the pound is having a rough time in the wake of the new UK government’s fiscal fervor, a move which the Financial Times says has discouraged some private equity investors from gaining exposure to the UK amid the “scary” economic climate and the potential for runaway inflation and an unusually long recession.
Schwarzman does not appear to be concerned and sees sterling weakness as a buying opportunity. In recent months, Blackstone has been busy recruiting at all levels in the UK, including Gabrielle Dale, who came from Macquarie as managing director of infrastructure investments, Thomas Honig, a director of Deutsche Bank’s infrastructure team, and Anders Ersbak Bang Nielsen. a former managing director in the investment strategy group of Goldman Sachs. The firm also runs its graduate program in the UK and is currently actively recruiting students. It’s not just about London though: Blackstone is also securing its exposure to Europe and has also been busy recruiting staff in Dublin, Luxembourg, Frankfurt and Paris.
Regardless, Business Insider has another warning for young bankers who thought the gravy train of recent years would go on forever. It will not. Junior investors are like a “deer in the headlights,” Mary Callahan Erdoes, CEO of JPMorgan Asset and Wealth Management, said at a conference last week. You have never seen a bear market and the world is turning into a world of high volatility, high inflation and less globalization.
Coupled with the fact that M&A and investment banking fees have plummeted and banks are getting nervous about the costs, this means the end of the summer months for young people in finance and they don’t know what to do about it, according to Business Insider. However, at the end of an unprecedentedly long bull market, even most middle- and senior-level people don’t know what to do. In the long term, juniors who uphold and survive their credentials in this market will be among the best to help future generations navigate the future.
In the meantime…
“Blackstone supports companies that support tens of thousands of jobs in the UK and I am confident that our growth plans will ensure we become an even bigger country to invest and do business in,” said British Prime Minister Liz Truss. (Blumberg)
banks incl Bank of America, Barclays Plc and Mitsubishi UFJ Financial Group have lost $500 million in financing the Twitter deal. (Blumberg)
Credit Suisse is becoming more and more like Deutsche Bank. The recent offer to buy back some of its shares mirrors the Germans’ offer to do the same in early 2016 when DB bought back over $5.4 billion. It only calmed concerns about DB’s liquidity for a month. (Blumberg)
Transaction fees at Credit Suisse are down 60% in the first nine months of this year, more than any other bank. (financial news)
McKinsey & Co have hosted some inflammatory all-hands meetings, and up-and-coming consultants have sent pointed emails copying everyone into it. One such email said McKinsey was an “amoral institution” because it advised coal companies “directly responsible for putting us on the incomprehensible fast track to planetary omnicide.” (financial times)
A Coinbase engineer was involved in an attempt to stop last Friday’s knife attack near Liverpool Street. “He got on his bike. I kicked the steering wheel before he could get started to stop him from escaping.” (Financial News)
Silent quitting is a Gen Z phenomenon.’The idea of nurturing is no longer considered cool, and a dangerous combination of laziness and entitlement has left Gen Z completely unprepared for work.” (WSJ)
If there is a long delay between signing the contract and starting the job, you may be able to negotiate a raise. Look for competitors of the company you are joining and point out their raises. (WSJ)
Click here to create a profile on eFinancialCareers. Make yourself visible to recruiters hiring private equity jobs where you can buy your own English country estate.
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